Spain Banks Face Moody’s Downgrades as Bankia Run Denied

Spanish banks face credit ratings downgrades by Moody’s Investors Service as the government denied there was a run on deposits at Bankia SA, the ailing lender it’s taking over.

Moody’s is expected to make a statement on downgrades for Spanish banks as early as this evening, two people with knowledge of the situation, who asked not to be identified because the decision hasn’t been announced, said today. A Moody’s spokeswoman in London declined to comment in a phone interview.