The credit ratings agency Moody's has downgraded 16 Spanish banks including Santander UK. It is the first British high street bank to be downgraded this year since the Euro crisis. The firm insists this has no impact on its UK business.
Customers of the troubled Spanish bank Bankia, nationalised last week, have taken out over 1 billion euros from their accounts over the past week, El Mundo newspaper has reported.
According to the newspaper shares traded today at 1.187 euros, which means that since its debut on the stock exchange last July with 3.75 euros, it has already lost 68% of its value.
Shares have now fallen by as much as 26% on the Madrid stock market, following reports of customers withdrawing funds.
Santander UK has been quick to reassure customers that their money is in safe hands, despite being downgraded by Moody's ratings agency.
The decision by a credit rating agency to downgrade Santander UK is another demonstration that the troubles in the eurozone affect us all