The talk now is of contagion as Greece looks ever more likely to leave the Eurozone.
The countries most likely to be affected by the domino fall are Italy and Spain. To add fuel to the fire, Moody’s downgraded 16 Spanish banks because they say the government has a reduced ability to support them. The government also had to offer a 6.21% interest rate for its Spanish 10 year bonds. In comparison, German bonds were offered at 1.834%.
Santander moves from Aa3 to A3, Banesto from A2 to A3, Santander UK from A1 to A2, BBVA of Aa3 to A3, Unicaja Bank A1 A3, Caixa Bank of Aa3 to A3, People's Bank of A2 to A3, Caja Rural de Navarra from A3 to Baa1, Banco Sabadell from A3 to Baa1, Spanish Cooperative Bank of A1 to Baa1, from A2 to Baa2 Bankinter, Spanish Confederation of Savings Banks (CECA) to Baa2 from A2 and Caja Rural de Granada from Baa1 to Baa3.
The agency also revised Liberbank, from Baa1 to Ba1, Cajamar Caja Rural, from Baa3 to Ba2, and Lico Leasing, from Baa3 to Ba3, in all three cases to levels encompassed within what is known as' junk bond ' status.
The countries most likely to be affected by the domino fall are Italy and Spain. To add fuel to the fire, Moody’s downgraded 16 Spanish banks because they say the government has a reduced ability to support them. The government also had to offer a 6.21% interest rate for its Spanish 10 year bonds. In comparison, German bonds were offered at 1.834%.
The banks affected:
Santander moves from Aa3 to A3, Banesto from A2 to A3, Santander UK from A1 to A2, BBVA of Aa3 to A3, Unicaja Bank A1 A3, Caixa Bank of Aa3 to A3, People's Bank of A2 to A3, Caja Rural de Navarra from A3 to Baa1, Banco Sabadell from A3 to Baa1, Spanish Cooperative Bank of A1 to Baa1, from A2 to Baa2 Bankinter, Spanish Confederation of Savings Banks (CECA) to Baa2 from A2 and Caja Rural de Granada from Baa1 to Baa3.
The agency also revised Liberbank, from Baa1 to Ba1, Cajamar Caja Rural, from Baa3 to Ba2, and Lico Leasing, from Baa3 to Ba3, in all three cases to levels encompassed within what is known as' junk bond ' status.
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