SPANISH BANKS DOWNGRADED: Moody’s Investors Service cut its credit ratings on 28 Spanish banks, saying the weakening financial condition of Spain’s government makes it more difficult for that country to support its lenders. The banks also are vulnerable to losses from Spain’s busted real estate bubble, Moody’s said.
SPAIN SEEKS AID: Moody’s announcement Monday came on the same day that Spain’s government formally asked for help from its European partners in cleaning up its stricken banking sector. It wasn’t known how much Spain would ask for out of the $125 billion loan package it has been offered.
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UNCERTAINTY ROILS MARKETS: That unanswered question spurred losses in stock markets in Europe and the U.S. Monday. Bond investors pushed Spain’s borrowing costs higher.
