Moody’s has warned all 15 Spanish regions of further downgrades.
Moody’s Investors Service has downgraded the credit ratings of Spanish regional governments and some state companies.
The credit ratings agency said on Friday that it lowered the ratings of eight regional and local governments and four units of the local governments, and warned all 15 Spanish regions of further downgrades, AFP reported.
Moody's also cut the ratings by three levels of Corporacion de Reservas Estrategicas and Administrador de Infraestructuras Ferroviarias, both government enterprises.
On June 13, the credit ratings agency downgraded the ratings of Spain by three levels, days after the country secured 100 billion euros (125 billion dollars) to rescue its banks.
It said the bailout “will further increase the country's debt burden, which has risen dramatically since the onset of the financial crisis."
On June 9, eurozone finance ministers agreed to lend 100 billion euros to Spain to save its teetering banks.
Battered by the global financial downturn, the Spanish economy collapsed into recession in the second half of 2008, taking with it millions of jobs.
Many economists believe Spain's economy will enter a new recession in the first two quarters of 2012.
The worsening eurozone debt crisis has raised Spain's financing costs as well as concerns that the country might have to seek a European Union bailout similar to Greece.