WORLD
S&P downgrades 5 Spanish banks
Baku, May 26 (AZERTAC). Standard & Poor`s on Friday lowered the credit rating of five Spanish banks in a move that follows the agency`s downgrade of Spain last month.
The affected banks are Banco Popular, Bankinter, Banca Civica and Bankia along with its parent Banco Financiero y de Ahorro (BFA), the ratings agency said in a statement.
"The rating actions follow our review of the wider implications for economic and industry risks in the Spanish banking sector after our two-notch downgrade of the Kingdom of Spain," the statement said.
Standard & Poor`s downgraded Spain`s sovereign debt rating to BBB-plus and added a negative outlook on April 26, saying it expects the Spanish economy to shrink both this year and next.
The agency lowered its rating for Spain`s fourth-largest bank Bankia, which was partially nationalised earlier this month, to BB+ from BBB- and lowered its rating for BFA to B+ from BB-.
Standard & Poor`s cut its rating for Banco Popular and Bankinter to BB+ from BBB- and reduced its rating for Banca Civica to BB from BB+.