Standard & Poor's on Monday downgraded the ratings of nine Spanish banks, including Santander and BBVA, after slashing the country's credit standing because of worsening deficit and growth problems.

The banks affected include Santander and its subsidiary Banesto, BBVA, Banco Sabadell, Ibercaja, Kutxabank, Banca Civica, Bankinter and the local unit of Barclays. S&P on Friday cut Spain's sovereign debt rating by two notches to BBB-plus.