James,
This is from a newsltter (today's edition) which I edit.
Moody’s downgrades Spanish debts
Rating Agency Moody’s has slashed Spain’s credit qualification by 3 points, from A3 to Baa3, indicating that the rescue of the banks increases the country’s credit burden. The agency has calculated Spanish debt will increase to 90% of Gross Domestic Product, and thus has placed the country’s debt just one point above ‘rubbish bonds’.
The Agency has also revised downward the rating of all Spanish banks, including Banco Santander and BBVA, as well as FROB, the government agency for restructure of the Banking sector.