The largest bank in the euro area, downgraded by Fitch
Credit rating agency Fitch downgraded monday by two notches, marks the first two Spanish banks, namely Banco Santander and Banco Bilbao Vizcaya Argentaria (BBVA). Fitch said it downgraded to Santander, the largest bank in Spain and the euro area, and BBVA to “BBB plus” from “A”. In addition, Fitch said that both have an outlook “negative”,. The fall in ranking the banking place just days after the same agency downgraded Spain’s sovereign rating three steps. The decision “reflects similar concerns that affected Spain’s sovereign rating, especially estimates that “Spain would remain in recession in the rest of this year and in 2013, unlike previous estimates that the Spanish economy will benefit from an upturn modest, “said Fitch. Banks downgrade comes four days after Fitch lowered the rating on the country of Spain with three steps, to BBB, citing increased costs to save the banking sector. Spain’s fourth largest economy in the euro area, has accepted a European rescue plan worth 100 billion euros. European Loan Fund will be injected into the Spanish public to support the banking sector (Frob), which in turn will provide the funds Spanish banks seeking help.
