Oh lala
From Bloomberg.
Moodys finds out about Spanish banks
In an expected move, Moodys downgrades 16 Spanish banks. The Trader has been writing about the rotten Spanish banking sector for a year at this stage. The rating agencies are realizing the shape of the Spanish banks now. Whatever you think, cheap Spanish properties are slowly hitting the market. By Moody´s.
Madrid, May 17, 2012 — Moody’s Investors Service has today downgraded by one to three notches the long-term debt and deposit ratings for 16 Spanish banks and Santander UK PLC, a UK-domiciled subsidiary of Banco Santander (Spain) SA. The rating downgrades primarily reflect the concurrent downgrades of most of these banks’ standalone credit assessments, and in five cases also Moody’s assessment that the Spanish government’s ability to provide support to the banks has reduced.
Moody’s Investors Service has today downgraded by one to three notches the long-term debt and deposit ratings for 16 Spanish banks and Santander UK PLC, a UK-domiciled subsidiary of Banco Santander (Spain) SA. The rating downgrades primarily reflect the concurrent downgrades of most of these banks’ standalone credit assessments, and in five cases also Moody’s assessment that the Spanish government’s ability to provide support to the banks has reduced.
The debt and deposit ratings declined by one notch for five banks, by two notches for three banks and by three notches for nine banks. The short-term ratings for 13 banks have also been downgraded between one and two notches, triggered by the long-term ratings changes.
Italy, Spain, Portugal Among Six Cut by Moody’s
More insight on the European Downgrades by Moody’s. Bloomberg video below.
Spain Pain continues as Moody’s Downgrades Spanish Banks
Cheaper Properties coming up….
Moody’s has placed on review for possible downgrade the ratings of eight Spanish banks and two holding companies — Banco Cooperativo, Banco Sabadell; Bankia and its holding company, Banco Financiero y de Ahorro (BFA); Bankinter, CaixaBank and its holding company, La Caixa; Confederacion Espanola de Cajas de Ahorro (CECA); Caja Rural de Granada; Ibercaja Banco; and Lico Leasing. This follows the rating agency’s reassessment of the financial strength of all Spanish banks reflecting increased loss expectations with respect to their commercial real estate exposure and an anticipation of reduced earnings generation capacity available to strengthen provisions or capital in light of the weakened growth outlook for the Spanish economy.
In addition, Moody’s announced it was expanding its ongoing reviews of seven banks involved in mergers to incorporate these considerations, specifically, the ratings of Unicaja, Caja Vital, Banco Popular and NCG Banco remain under review for downgrade and the ratings of Bilbao Bizkaia Kutxa, Banco CEISS and Banco Pastor remain under review for upgrade.
Who could believe this (some hours ago)? ES firmly below 1200 and Moody’s shooting at France.
How fast things change in just an afternoon. Earlier today when ES Futures traded at 1230, it all felt so good. Just mentioning we would trade below 1200 today, some proclaimed we had lost it, but here we are again. The shorts closed out, the new positive longs, Biggs, freshly long, and the market at levels nobody thought remotely possible this morning. To make it more interesting, Moody’s is delivering some harsh words on France. Remember what we wrote of last Friday, What’s going on in France? Goodbye EFSF. Below from Moodys:
However, Moody’s notes that the government’s financial strength has weakened, as it has for other euro area sovereigns, because the global financial and economic crisis has led to a deterioration in French government debt metrics — which are now among the weakest of France’s Aaa peers.
Latest comments