Bloomberg News

‘Weak’ Spain Economic Outlook Negative for Banks, Moody’s Says

January 29, 2012

Jan. 30 (Bloomberg) -- The Bank of Spain’s economic outlook, which forecasts a 1.5 percent contraction in 2012, is “credit negative” for lenders, according to Moody’s Investors Service.

“The main risk for banks will be that stronger institutions may have to share the burden of recapitalizing the system by merging with weaker peers without receiving sufficient government compensation,” Moody’s said in its Weekly Credit Outlook.

To contact the reporter on this story: Wes Goodman in Singapore at wgoodman@bloomberg.net

To contact the editor responsible for this story: Benjamin Purvis at bpurvis@bloomberg.net


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