S & P Cuts Ratings of Banks in Spain

Financial crisis in Europe has been continuing. Standard & Poor's has cut its credit ratings of 15 Spanish banks on Monday (13/2) in a follow up step downgrade of Spain by the agency last month. Standard & Poor's has downgraded Spain's sovereign debt to A from AA-on January 13.

Standard & Poor's lowered credit ratings on 10 banks by one level and in five other banks with two levels. Spain's largest financial institutions affected by downgrades including Santander, BBVA, Bankia, and CaixaBank, rating agency said in a statement.

Rating Santander, the eurozone's largest bank by market capitalization, was lowered to A + from AA-. Then, the ratings for BBVA, Spain's second largest bank, to A from A +.

Earlier, on Monday, Fitch Ratings downgraded the credit ratings of four of the largest Spanish bank, Santander, BBVA, Bankia, and Caixabank, after Spain's sovereign debt downgraded last month.

Rating agency analysts estimate the profitability of Spanish banking system remains below its historical average over the medium term because the bank continues to operate in bad economic and financial environment.