Fitch downgrades Spain's two major banks

Credit rating agency Fitch has downgraded Spain's two biggest banks by two notches despite the bailout effort made by the European Union (EU).

Fitch downgraded the credit ratings of Santander and BBVA banks from A to BBB+, saying the rating adjustments were primarily based on the downgrade of Spain's sovereign debt ratings to BBB- from A- last week as the country is forecast to remain in recession throughout this year and 2013.

The Spanish government secured a bailout of 100 billion euros ($125 billion) from the EU over the weekend in an effort to recapitalize its banking sector.