After Italy, Spain. Moody's goes wild against the banks and, as reported today by the Iberian newspaper Expansion, it's time ready to cut the rating of 21 Spanish lenders, after doing the same the other night against 26 Italian banks.
“Sources in the Spanish financial environment are convinced that the agency will significantly downgrade the ratings of several institutions – the newspaper wrote today – the announcement could arrive within a week according to stock market sources“. Expansion then specified that 21 banks are targeted by the rating agency.
Indeed, the first signs of “cutting” have already arrived since the rating agency has assessed that the reform of the Spanish banking system, which obliges banks to allocate 30 billion euros to reserves to deal with the real estate crisis, “it will improve the capacity of Spanish institutions to absorb losses but it will not solve the underlying problems”.
