Moody's Reportedly Gearing Up to Slash Spanish Banks

Moody's Investors Service will cut the ratings of all Spanish banks in the next hours following a downgrade of Spain's sovereign rating by three notches on June 13, two financial sources told Reuters on Monday.

"We have been informed that Moody's will downgrade the ratings of Spanish banks following the cut on Spain's sovereign in June", said one of the sources.

A second source confirmed the move would happen in the next few hours and that the banks have been informed.