Moody's downgrades Spanish banks

Last updated 10:17 26/06/2012

Relevant offers


Tuakau man's text-message dismissal ruled unjustified NZ dollar falls following Fonterra milk price forecast Apple still trying to break into TV but faces plenty of roadblocks Fairfax, NZME media merger approval sought Airways to charge less for air traffic control services Five charts that explain the Budget Overcrowded Dunedin nightspot Suburbia loses booze licence Beerhive Blog: Don't worry Panhead beer fans - the sky isn't falling Budget 2016: Joyce urged to deliver immediate housing support for homeless IT contractor Megan Mary O'Sullivan's unpaid tax bill topped $500,000

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