S&P: Spain needs help from UE

Friday, 8 June 2012 05:28

The credit rating agency Standard & Poor’s announced on Thursday that Spanish banks could suffer losses of up to EUR80-112 billion in 2013. EU assistance to the Spanish banking sector appears increasingly inevitable.
The reason of current situation is according to S&P accumulation of bad loans, less likely to be repaid.
Earlier on Thursday, another credit rating agency – Fitch – lowered the note, Spain’s three levels to BBB with a negative outlook. According to Fitch Spanish banks should be recapitalized by 50-100 billion.