Moody's downgrades Spain's Liberbank
2013-07-12 11:52:08
The ratings agency Moody's has downgraded the ratings of the Spanish bank Liberbank from Ba3 to B1 "on review for downgrade", Moody's reported on Thursday.
Moody's believes the Spanish government might not have enough capacity to assure the capital of Spanish banks, such as Liberbank, which needed the European Union's (EU) help.
The ratings agency takes into account that the agreement between the EU and Spain by which the EU gave financial aid to Spanish banks expires in January.
The Spanish government has already said that Spanish banks will not need more European aid but if the country can afford more injections for its banks remains to be seen.
Liberbank (along with Caja3, BancoMare Nostrum and Banco CEISS) is part of the second group of banks which received the EU's financial aid. The first group of banks are nationalized, while the second group are not but also needed public aid.
This second group received a total of 1.865 billion euros (2.431 billion US dollars), of which Liberbank received 124 million euros.
Meanwhile, the Spanish government hopes Spain will register growth in 2014 despite the International Monetary Fund (IMF) warned on Wednesday the country will not see economic growth until 2015.
The Spanish State Secretary for Trade Jaime Garcia-Legaz assured on Thursday Spain would grow in 2014, which would mean a turning point in terms of creating employment.