MADRID (Reuters) - ratings agency Moody said Wednesday, he had developed Spain on review for possible downgrading of its funding needs and doubts about its banking sector and regional finance, which prompted the euro to the slide.
However, the Agency said did not resort to a EU bailout the Greece and the Ireland Madrid.
"Moody does not believe that solvency the Spain is under threat and in its assumptions case basis does not expect the Spanish Government to support liquidity GED," Chief Analyst of Moody on Spain Kathrin Muehlbronner said in a statement.
"However, important financing needs Spain, not only for the sovereign, but regions Governments and banks, also made the other episodes of funding stress sensitive countries".
Extended euro of losses from the day on the advertisement.
Person at the Ministry of economy was immediately available for comment.
Agency ratings, which has a rating of AA1 Spain, cited vulnerability of countries to funding constraints, low market confidence and the possibility of a greater debt should the banks should also capitalization.
"(Moody quote) issues which were enough screens radar for some time, but this time particular has the potential to generate a more negative impact on the market sentiment," said Nick Matthews, an economist at RBS.
"There has been a question mark to the need to take advantage of the banking industry for quite some time now."
Earlier this week, Moody has kept its negative Outlook on banks Spain, citing concerns about access to market financing and their capitalization.
"(Moody's)" had the same doubts sovereign debt market, this is why spreads have widened against German bonds, "said Jose Carlos Diez, an economist at the broker Intermoney." "" The Government is taking steps to address these problems. »
The Spain received from scrutiny on international markets, given that the Ireland was forced to take a whole aid 85 - billion euros (54 billion to £) in November on the concerns of the similarities between countries property bust and banking systems.
The Government denied that he should also apply to the European installation of financial stability (EEHC) and rejected any comparison between its economic position and the Ireland.
"Moody... continues to display as a much stronger than other euro area countries under stress, credit Spain" reporting agency ratings said. "" "" This is reflected in significantly higher than the Spanish sovereign rating. Review of Moody will therefore probably conclude that the Spain rating remains in the range of Aa. »
(Reported by Paul Day, Sonya Dowsett and Rodrigo de Miguel; editing by Mike Peacock)
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