Fitch, on Monday, downgraded its credit rating for Spain's two largest banks, Santander and BBVA, by two notches in a move that follows the agency's downgrade of Spain's sovereign rating last week.

The move “reflect similar concerns to those that have affected the Spanish sovereign rating, in particular, that Spain is forecasted to remain in recession through the remainder of this year and 2013 compared to the previous expectation that the economy would benefit from a mild recovery,'' rating agency Fitch said.

More In: Economy | Business