The Banking and Strategy Initiative

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S&P confirms its Spain ratings impact | Banking insight

BBVA and Santander were among more than a dozen banks downgraded in Spain after ?Italian Baanks suffered a similar fate last week on the sovereign downgrade impact. Fitch alsolowered ratings on Spanish lenders, confirming the markets fear and the double downgrade by Moody’s that all say there is too much drop in yields on the Spanish debt and it makes no sense. Spain’s new government has however moved on reforms but that did not apparently change much. Spain introduced pay limits for Executive cadres and added a EU/r 50 bln in provisions on soured loans, both touted as just scratching the surface at the time

Santander dropped to A+ and BBVA to A. Banco Poplar, La Caixa and Bankia also suffered downgrades. The Cajas are due another consolidation apparently in Bankia. Fitch reduced ratings of Santander La Caixa and Bankia

The Industry Strength rating for Spain is down to BBB-

 

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