Moody's Investors Service will announce a sharp rating downgrade of Spanish banks ratings later Monday, Spanish newspaper Expansion reported.
The government today formally asked for a bailout from the European Union to shore up its ailing banking sector.
Moody's is set to make the announcement sometime after 21.00 GMT, the report said. Most of the banks are likely to get junk ratings.
Previously, Moody's downgraded 16 Spanish banks in May, citing rising loan defaults and a renewed recession. The rating agency on June 13 lowered Spanish government bond rating by three notches to 'Baa3'.
by RTT Staff Writer
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