Moody's Downgrades Spain And Warns

Moody's downgraded Spain's sovereign debt rating by another notch today, from Aa2 from Aa1.

It also warned of further downgrades. It states that bank restructuring will cost more than twice what the government expects.
"[..] believes there is a meaningful risk that the eventual cost of the recapitalization effort could considerably exceed the government's current projections,"

The government and central bank have forecast no more than 20 billion euros would be needed to recapitalise weak banks. However, Moody's said the overall cost was likely to be closer to 40-50 billion euros, or in a :more stressed scenario" recapitalization needs could even rise to around 110-120 billion euros.