Debt ratings of 16 Spanish banks cut

Moody's has cut the debt ratings of 16 Spanish banks by one to three notches

The ratings agency is citing the effects of the ongoing recession and the reduced creditworthiness of the Spanish government.

It also says the banks are suffereing "rapid asset-quality deterioration, with non-performing loans to real-estate companies rising rapidly".

Moody's has said that it expects other loan categories to deteriorate.