World | Moody's Moody's Cuts Debt Ratings of 28 Spanish Banks Country's busted real estate bubble leaves banks vulnerable, agency says By Newser Editors and Wire Services Posted Jun 25, 2012 5:13 PM CDT Copied In this June 16, 2012, file photo, a demonstrator holds a life saver in front of the headquarters of Bankia bank during a protest against the Spanish bank in Madrid, Spain. (AP Photo/Andres Kudacki) Moody's Investor Service is cutting its credit ratings on 28 Spanish banks by one to four notches, saying the weakening finances of Spain's government is making it more difficult for that country to support its lenders. Moody's also said the banks are vulnerable to losses from Spain's busted real estate bubble. The announcement from Moody's came on the same day that Spain's government formally asked for help from its European neighbors in cleaning up its stricken banking sector. However the request left many questions unanswered, including how much of a $125 billion loan package Spain would ask for. That uncertainty led to losses today in stock markets in the Europe and the US. Bond investors pushed Spain's borrowing costs higher, a signs of lagging confidence in the country's ability to support its banks. Read These Next 11 people hurt in a "brutal act of violence" in Michigan. A parent's nightmare, in a white cardboard box. We knew Letterman would pipe up about Colbert eventually. White House makes Hegseth put his polygraph away. Get breaking news in your inbox. What you need to know, as soon as we know it. Sign up Report an error