Moody's downgrades Spanish banks

Last updated 10:17 26/06/2012

Relevant offers

National

Auckland rate hike approved Lighthouse man puts Tower in spotlight Christchurch bans R18 shops in suburbs Rise in housing costs outpaces income Windflow aims another blow at NZ Windfarms Town centres the talk of Kapiti Skellerup gets OK for Wigram rubber factory Bum slap just a fun slap, ERA says Ryman renames village after Essie Summers Trilogy turns a profitable half-year

Moody's Investors Service has downgraded the long-term debt and deposit ratings for 28 Spanish banks and two issuer ratings, following on the heels of a cut to Spain's sovereign rating to just above junk status earlier this month.

Because the banks have several links to the sovereign, Moody's said in a statement, Spain's reduced creditworthiness "implies a weaker credit profile for Spanish banks."

Among the downgrades was a cut to Banco Santander's long-term rating to Baa2 from A3. But the rating is under review for further downgrade, meaning more cuts could be forthcoming to the euro zone's largest banks.

Still, the move kept Santander one notch above the sovereign rating of Baa3, the Moody's release noted, because of the bank's geographic diversity and manageable exposure to Spanish sovereign debt.

Ad Feedback

- Reuters

Special offers

Featured Promotions

Sponsored Content