The banks named by Moody’s are Santander, BBVA, Popular, Sabadell, Banca March, Bankinter, Pastor, Banesto, Banca March, Banco de Valencia (part of Bancaja) and Bankoa, owned by the French Crédit Agricole.

Moody’s rating agency has threatened to reduce the ranking for long term debt for as many as 30 Spanish banks and savings banks. It follows a threat made last week to reduce the classification of Spanish debt.

The statement from Moody’s says that they are considering reducing the Spanish banks which currently have an Aa1 rating. They think the reduction of the sovereign debt in Spain could affect a large part of the financial system which has received help or which has debt guaranteed by the State, as the Spanish Government will have less room for giving any further help should it be needed. 

However Moody’s notes that strong incentives remain for the Government to continue to give the support it can.

The banks named by Moody’s are Santander, BBVA, Popular, Sabadell, Banca March, Bankinter, Pastor, Banesto, Banca March, Banco de Valencia (part of Bancaja) and Bankoa, owned by the French Crédit Agricole.

Among the savings banks affected are La Caixa, Caja Madrid, Bancaja, CAM, Unicaja, Ibercaja, Caixa Catalunya, BBK, Cajastur, the new merged bank between Caixa Galicia and Caixanova, Caja Cantabria, Caja España, Caja Segovia, Caja Ávila, Caja Vital, Caja Municipal de Burgos, Caja Rioja and Caja Insular de Canarias.

Moody’s has also warned it could revise the ranking of the ICO, the Official Credit Institute.
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