Moody’s leaves Multi-Cédulas teetering on junk

Moody's looks set to downgrade a swathe of Multi-Cédulas to junk, after lowering the covered bond ratings of three Spanish banks on Wednesday. The move followed downgrades of the banks on Tuesday evening. The decision could spark forced selling. But the bonds concerned are considered money good and an acquisition by a stronger credit before the end of the year could eventually mean some are upgraded again.