Spanish sub-sovereigns step up efforts to plug the funding gap

Despite a rash of Moody’s downgrades, the prospect of a sovereign cut and a failed jumbo loan, bankers this week dismissed fears that Spanish sub-sovereigns face a funding crisis. But their dependence on domestic loan, MTN and bond financing is likely to increase as foreign investors shun the country’s credits, officials acknowledged. Sarah White takes an in-depth look at the Spanish sub-sovereign sector.