Moody's lowers some ratings on Spanish banks

Print
Email
|

Associated Press

Posted on October 5, 2012 at 4:00 PM

Updated Friday, Oct 5 at 4:01 PM

Moody's Investors Service is lowering its ratings on four Spanish banks owned by a government fund due to expected losses that may be passed along to creditors.

Spain's government and banks are struggling as the country suffers through its second recession in three years.

The rating agency dropped its senior subordinated debt ratings for Catalunya Banc, NCG Banco, Banco de Valencia S.A and Bankia with its parent company Banco Financiero y de Ahorros on Friday to junk grade "C."

Moody's also downgraded the senior debt and deposit ratings of Banco de Valencia one notch in junk-grade status to "Caa1".

The rating agency is keeping the remaining ratings of the other banks on review for possible downgrade pending its review of the country's bond rating and sovereign rating.

Print
Email
|