Moody’s Investors Service downgraded 12 Spanish sub-sovereign ratings and two Spanish government-related entities to reflect its recent downgrade of the country’s sovereign debt rating.
Eight regional and local governments and four related issuers were affected. The ratings of three other sub-sovereigns are unchanged by the latest rating actions. However, Moody’s has placed the ratings of all 15 Spanish sub-sovereign issuers on review for downgrade, it said.
Additionally, government-related entities Corporacion de Reservas Estrategicas and Administrador de Infraestructuras Ferroviarias were both downgraded by three notches to Ba1 from Baa1, pushing the entities into junk territory.
Earlier this week, Moody’s downgraded Spain three notches to Baa3 from A3, pushing it to the brink of junk territory and placing its ratings on review for possible further downgrade. The ratings company pointed to Spain’s plans to borrow up to EUR100 billion from the European Financial Stability Facility, the government’s limited financial-market access and continued weakness in the economy.