June 26 (Bloomberg) — Spain is poised for a downgrade to junk by Moody’s Investors Service, according to investors who sent the cost of default insurance for the nation’s biggest banks and companies close to record highs.
Credit-default swaps on Banco Santander SA, the country’s biggest bank, jumped 23 percent this quarter to 454 basis points, compared with an all-time high of 474 in November. Banco Bilbao Vizcaya Argentaria SA rose 26 percent to 477, approaching May’s record 516, while phone company Telefonica SA surged 70 percent to a record 540 basis points.
Moody’s downgraded 28 Spanish banks yesterday including a two-step cut for Banco Santander and a three-level reduction for BBVA, a week after it lowered Spain’s rating to Baa3, on the cusp of junk. The country remains on review for another cut by New York-based Moody’s after it sought a 100 billion-euro ($125 billion) international bailout for its banks and on speculation losses from its real estate industry will worsen.
- Spain Poised for a Cut to Junk as Default Swaps Near Records
- Spain’s borrowing cost soars
- Italian borrowing costs spike at auction
- Bank bailout to spark firesale of corporate Spain
- World’s oldest bank in Italy ‘wants 3bn state aid’
- World’s oldest bank gets government bailout
- Germany to borrow more to meet eurozone aid commitments
- Germany Pressed to Scrap Senior Status on Spain Rescue Loans
- Default Coverage Costs More as Crisis Touches Berlin
- U.K. Budget Deficit Swells as Recession Hits Taxes: Economy
- Stockton city council meets Tuesday to decide on bankruptcy
- Detroit firefighters battle 26 fires in 24 hours
- 18% of Detroit firefighters face layoffs
- Cyprus bailout may equal half its economy
- Home Prices in U.S. Cities Fall at Slowest Pace Since ’10
- Are We Lying to Ourselves About Our Pension Problems?
- Public Pensions Face Wider Deficits Under Accounting Rules
- N.J. public pensions expected to be hit by change in accounting standards