Spain gets moody

Credit rating agency Moody’s today downgraded Spanish debt partly based on the massive recapitalisation needed by the banking sector. It put the funding needs at €40bn - €50bn, or €110bn - €120bn under a “more stressed scenario”. Way above the Spanish Government’s previous estimate of €20bn.

Spain was none too pleased with this, suggesting it was premature and that Moody’s should have waited for the official statistics.

Oh, well maybe the central bank was ready to make a more accurate assessment of the banking sector funding needs – which we all expect are far greater than $20bn – ...

This afternoon the Bank of Spain released its assessment: €15.15bn...