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Spanish banks downgraded by Moody's

  • Ratings agency Moody's has cut the credit rating of 28 Spanish banks, a week after the country asked for money to support them.

    The move follow a cut to the government's own credit rating to just above junk status earlier this month.

    Among the downgrades was a cut to Banco Santander with its long-term rating slashed from to Baa2 from A3.

    Santander remained one notch above the sovereign rating of Baa3, due to the bank's global footprint.

    The downgrades come after Spain formally requested for money to support the banking sector following last week’s independent audit of its banks that found they will need up to $77.6 billion in extra funding.