Article: MOODY'S DOWNGRADES CAIXA PENEDES TO BAA1/P-2/C-, NEGATIVE OUTLOOK

Moody's Investors Service today downgradedCaixa d'Estalvis del Penedes' ("Caixa Penedes") long-term bank depositand senior debt ratings to Baa1 from A2, and the bank financial strengthrating (BFSR) to C- from C. The short-term debt and deposit ratings werealso downgraded to Prime-2 from Prime-1. The outlook on the long- termdebt and deposit ratings and BFSR is now negative. According to Moody's, the downgrades of Caixa Penedes' ratings, which nowbring it more in line with similarly placed Spanish banks in this ratingrange, were prompted by the combination of the following factors: (1) One of the highest exposures (in % of Tier 1 capital) to the realestate and construction sectors in Spain, ...

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