Moody’s cuts 16 banks in Spain

Moody’s Investors Service cut the long-term debt and deposit ratings of 16 Spanish banks yesterdays, including Banco Santander, the eurozone’s largest, saying the government’s ability to support some banks had weakened.

All the institutions named were downgraded by at least one notch, while some suffered cuts of up to three notches.

Moody’s cut Santander’s bank financial strength rating and standalone credit assessment by two notches to C/A3 from B-/A1. BBVA, Spain’s second largest lender, saw its ratings cut to A3/C/A3, with a negative outlook.