Spain slides back into recession Adding to the country's woes, Standard & Poor's downgraded the ratings of nine Spanish banks on Monday, after slashing the country's sovereign debt rating by two notches to BBB-plus on Friday 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. Despite the recession and an unemployment rate of nearly one in four, the government has vowed to meet its ambitious deficit-cutting targets so as to regain market confidence. The Spanish government's updated economic stability plan, published on Friday before sending it to the European Commission, saw an estimated contraction of 1.7pc in 2012 turning to 0.2pc growth by next year. Tens of thousands of people took the streets on Sunday to protest against the conservative Popular Party's spending cuts, especially in health care and education. Investors' doubts about Spain's ability to meet its deficit goals are amplified by the plight of Spain's banks, many bogged down in bad loans extended during the property boom. Markets fear the state may have to step in to help some banks' fragile balance sheets, placing its own deficit under further stress. David Cameron, the British prime minister, said on Sunday that the region was "nowhere near halfway through" the debt crisis.