Moody Lower Ranked 16 Bank of Spain?

 MAKE MONEY BLOG$, Madrid - the European banking industryagain suffered a severe blow after ratings agency Moody's loweredthe credit ratings of 16 Spanish banks. The move comes following the weakening of the government's ability to support multiple banks.



The agency downgraded the long-term debt and deposit ratingsbetween one and three points to 16 and the Spanish bankSantander UK PLC, a subsidiary of Banco Santander SA in the UK.

Among the downgraded banks are the two biggest Spanish bank,Banco Santander SA and Banco Bilbao Vizcaya Argentaria SA.

Debt and deposit ratings go down one level on the five banks, twolevels for the three banks, and three levels for the nine banks. Short-term ratings for 13 banks have also been derived between one andtwo levels.

Downgrades Spain came shortly after the agency cut ratings on 26May 14 Italian banks, including Italy's largest bank, Intesa Sanpaoloand UniCredit. Moody's lowered the long-term debt and depositratings to financial institutions because of the recession, austerity measures that are difficult, and debt of 1.9 trillion euros. This resulted in lower demand for credit and loan losses for banks overItaly.

This step is not surprising. Moody's previously announced plans todowngrade 122 European financial institutions in May.
SOURCE: TEMPO.CO
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