Fitch downgrades Spain's Banco Popular
Fitch credit rating agency downgraded its long-term notation for Spanish bank Banco Popular by two notches on Wednesday and its short-term rating by one notch.
The agency, saying that the outlook remained stable, said that its decision was motivated by the effect of weak performance by the Spanish economy on the bank.
It cut the long-term rating from AA minus to A, and the short-term rating from F1 plus to F1.
The bank, commenting on the ratings statement which included a reference to difficulties experienced by the bank in obtaining refinancing on the market, said the effect would be limited since at the end of June it had signed an agreement with French group Credit Mutuel-CIC to create a new bank in Spain.
This initiative would demonstrate the strength of Banco Popular's business model and its solvency, it said.
© 2010 AFP