S&P Ratings Action on 15 Spanish Banks Fails to Move the Euro

A month to the day after downgrading Spain’s sovereign rating, Standard & Poor’s took rating action on 15 Spanish financial institutions. However, Euro traders shrugged off the largely expected move.

THE TAKEAWAY: S&P takes ratings action on 15 Spanish banks > Move largely expected following Spain’s sovereign downgrade on Jan. 13 > EUR reaction muted

Standard & Poor’s downgraded 13 Spanish financial institutions on Monday and took ratings action on 2 others in a move largely anticipated after the agency cut Spain’s sovereign rating on January 13. The following institutions were affected, including the country’s largest lenders Santander and Banco Bilbao Vizcaya Argentaria (BBVA):

The Euro’s reaction remained muted due to the widely-expected nature of S&P’s action.

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Instead, the common currency continues to be supported by Greece’s passage of austerity measures on Sunday, and markets will continue to focus on developments related to the country’s second bailout package as Eurozone finance ministers meet on Wednesday.

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