S&P cuts Spanish banks

Standard & Poor's said it lowered its long- and short-term counterparty credit ratings on Confederacion Espanola de Cajas de Ahorros (CECA) and Ibercaja Banco SA to BB+/B from BBB-/A-3 and lowered its long-term rating on Bankinter SA to BB from BB+.

The agency said it affirmed its B short-term rating on Bankinter. The outlook on the ratings on these banks is negative.

All ratings were removed from CreditWatch negative, except the short-term rating on Bankinter, which was not on CreditWatch.

Subsequently, the agency said it assigned its BB+/B counterparty credit ratings to Cecabank SA, a newly created commercial bank following the transfer by CECA to Cecabank of most of CECA's assets and liabilities. The outlook is negative.

S&P is keeping on CreditWatch with negative implications its BB long-term rating on Bankia SA and its B/B long- and short-term ratings on its parent holding company, Banco Financiero y de Ahorros SA, ahead of the announcement of full details on the content of the banks' recapitalization and restructuring plans, expected to be finally approved by the end of the month.

The agency said it affirmed its ratings on the remaining Spanish banks that it rates and, when appropriate, removed them from CreditWatch with negative implications. The outlook on the ratings on these banks is negative.

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