Tuesday, December 13, 2011

Moody's may downgrade Spanish bank ratings

Late yesterday, Moody's rating agency said that they might be downgrading more Spanish banks as their solvency in the Euro Zone falls.

Moody's on Monday placed eight Spanish banks and two holding companies on review for possible downgrades due to expectations of increased losses stemming from their commercial real estate exposure. The move was prompted by Moody's reassessment of all Spanish banks which indicated a projected decline in earnings generation capacity due to a weaker growth outlook for the Spanish economy. - Marketwatch

Frankly, isn't it about time they were all downgraded enmasse, since liquidity and solvency for the majority of them is a smoke and mirrors over-leaveraged sham.

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