Moody's : Spain heading in right direction

A move by Spain to restructure its banking sector will help restore investor confidence and help banks regain access to market funding, Moody's Investors Service said Monday.

In its Weekly Credit Outlook, Moody's said the Spanish plan aims to increase provisioning for real estate assets and help align the book value of those assets with their true market value.

"We consider the government's plan credit positive since it will compel the clean-up of losses embedded in banks' balance sheet and improve transparency on banks' real financial health, helping to restore much needed market confidence," the ratings agency said.