The leading web resource for financial technology

Rating downgrades for Spanish banks

email this aricle - Rating downgrades for Spanish banks  - 12 October 2011 print this article - Rating downgrades for Spanish banks  - 12 October 2011
Rating downgrades for Spanish banks
A number of banks in Spain have been downgraded by two leading credit rating agencies.

The country's two largest lenders - BBVA and Santander - were among the ten financial institutions to see their levels cut by Standard & Poor's (S&P's), while Fitch revealed it is reducing the position of six banks.

According to the two ratings groups, a bleak outlook for Spain's economic future was the reason for such movement.

S&P noted: "Spain's economy faces dimming growth prospects in the near term, real estate market activity remains depressed and turbulence in the capital markets has heightened."

Regarding the nation's two major banks, S&P's cut the rating of Santander by one notch to AA-, while that of BBVA - which has been in operation for more than 150 years - was downgraded one level to A+.

It claimed lenders in the country would continue to be affected by the worsening Spanish economy for at least the next 15 to 18 months.

By Claire Archer

Comments (0)

No one has commented on this yet. Be the first!
Add your comment - Max 1000 characters used
More news