Moody’s Investors Service is on the bank-downgrade warpath again Monday, this time slashing the ratings of 28 Spanish banks by anywhere from one to four notches.
Moody’s says today’s downgrades follow the weakening of the Spanish government’s creditworthiness (Moody’s downgraded Spain’s government bond ratings to Baa3 from A3 on June 13), and also reflect the lowering of most of these banks’ standalone credit assessments. Specifically, Moody’s said the debt and deposit ratings declined by one notch for three banks, by two notches for 11 banks, by three notches for ten banks and by four notches for six banks. The short-term ratings for 19 banks have also been downgraded between one and two notches, triggered by the long-term ratings changes. Straight from the Moody’s mouth: