Santander and 15 other Spanish banks are downgraded.
Among the reasons cited for Moody's review are the rapid deterioration in asset quality and a government with less capacity to provide support to institutions.
247 with international agencies - The Moody's Investors Service rating agency announced on Thursday the downgrading of the long-term debt and deposit ratings of 16 major Spanish banks, including the Santander group and BBVA. Some cuts were by up to three notches.
In a statement released on its website, the agency justified the action by citing the worsening adverse conditions in which financial institutions operate, the lower solvency of the country's credit, the rapid deterioration of asset quality, and restrictions on access to capital markets. In five cases, it alleged that the Spanish government now has less capacity to provide support to institutions.
Among those affected are Banco Santander, Banco Santander UK PLC, Banco Bilbao Vizcaya Argentaria, Unicaja Banco, CaixaBank, Banco Popular Español, Caja Rural Navarra, Banco Sabadell, Banco Cooperativo Español, Bankinter, Confederación Española de Cajas de Ahorro, Caja Rural de Granada, Liberbank, Cajamar Caja Rural and Lico Leasing.
Fearful of the economic outlook, Spain has once again entered a recession this quarter, and account holders at the nationalized Spanish bank Bankia withdrew more than 1 billion euros last week. Bankia's shares fell as much as 26% on Thursday and closed with losses of 17%.