Spanish banks have credit ratings cut by Moody’s
It also cut the debt rating on Santander UK, a subsidiary of the Spanish banking giant. http://www.bbc.co.uk/news/business-18100049
It comes after shares in struggling lender Bankia fell another 14%. They have almost halved in value this month. MBT shoes
Fears about losses at Spanish banks has hit shares across EuropeMBT shoes.
The banks include Banco Santander and BBVA, the biggest banks in Spain. Ten of the 17 banks were also put on negative credit watch, meaning that further downgrades are possible. http://blogs.que.es/luowenbin/
“The change to Moody’s credit rating of Santander UK plc has no impact on our businesses in the UK or our plans for future growth,” Andy Smith, a spokesman at Santander said about the downgrade.
“Santander UK plc is an autonomous subsidiary of the Santander Group, with more than 90% of its total assets held in the UK and a eurozone sovereign exposure of less than 1% of assets.”In cutting the ratings, Moody’s cited the “adverse operating conditions, characterised by the renewed recession, the ongoing real-estate crisis and persistent high levels of unemployment”. MBT shoes uk
It also said that the Spanish government, due to its borrowing difficulties, has had its ability to provide support to the banks “reducedMBT shoes“.
The Spanish government also had to pay higher rates of interest to borrow money on the markets, which leads some to believe it will need a bailout.
Moody’s also cut the ratings of four of Spain’s regions – Catalonia, Murcia, Andalucia and Extremadura – of whom it said there is only a “low probability that the regional governments will be able to meet the 2012 deficit target”. mbt
Bankia was forced to deny a report customers had taken 1bn euros ($1.3bn; £800m) out of the bank, which is set to be part-nationalised, in the past weekMBT shoes.
Spain’s economy minister denied reports of a surge in withdrawals from Bankia in recent days.
“It’s not true that there is an exit of deposits at this moment from Bankia,” said Fernando Jimenez Latorre.
Later, the bank’s chief executive said volumes had been “basically normal”. MBT shoes sale
BankiaMBT shoes , which holds 32bn euros (£25.7bn) in distressed property assets, was partly nationalised this month. On Wednesday, it said it was delaying the release of its first-quarter results.
It has the industry’s largest exposure to the property market, which burst spectacularly and has saddled its banks with bad debtMBT shoes.
“Markets are worried about eurozone bank deposit runs and an escalating banking crisis,” said VTB Capital economist Neil MacKinnon.
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