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FXstreet.com (San Francisco) - Moody's Investors Service has cut the long-term ratings of 12 Spanish sub-sovereign and it has placed "the ratings of all 15 Spanish sub-sovereign issuers on review for downgrade."

The decision "follows the weakening of the sovereign's creditworthiness, as captured by Moody's downgrade of Spain's government bond ratings to Baa3 from A3 on 13 June 2012, and the initiation of a review for further downgrade," states the Moody's paper.

In addition, Moody's has "downgraded the long-term ratings of Corporacion de Reservas Estrategicas (CORES) and Administrador de Infraestructuras Ferroviarias (Adif) by three notches to Ba1 from Baa1."

Regarding Spanish government related entities' downgrade, the rating rationales answers that "despite the lack of explicit government guarantees, the link between the ratings of these companies and that of the sovereign is based on their status as government-related entities (GRIs)," says the Moody's release. "Their strategic importance to Spain and the very strong government support that is incorporated within their ratings."

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