Standard & Poor’s downgraded ABN Amro Bank and SNS Bank by one notch each on Friday, and took negative rating actions on several other Dutch financial institutions, because of more negative expectations about economic conditions in the Netherlands.

ABN Amro was lowered from A+ to A and SNS Bank from BBB+ to BBB.

“In our view, Dutch banks are exposed to increased economic risks as a result of a potentially more protracted downturn in the Netherlands and wider euro-zone,” said the rating agency. “We also consider that the prolonged correction in the property market and measures to reduce the budget deficit will continue to weigh on the economy, although we expect the overall impact on the banking sector to be moderate.”

The outlook on SNS Bank’s rating is negative, while ABN Amro’s is stable.

“The negative outlook on SNS Reaal and SNS Bank primarily reflects our view that the group’s overall franchise may face some erosion over the next two years,” said S&P. “Among other things, it takes into consideration our understanding that SNS Reaal may consider selling parts of its business as a result of its strategic review.”

The outlooks on the ratings of ING Bank and Achmea Hypotheekbank were revised from stable to negative, while their ratings were affirmed.