UPDATE 1-Moody's reviews Spanish bank ratings

MADRID May 19 (Reuters) - Ratings agency Moody's said on Tuesday it is putting its bank financial strength ratings for 36 Spanish banks under review for a possible downgrade due to expectations of further deterioration in their asset quality.

Moody's included all listed Spanish banks among the institutions under review, noting that any downgrade of banks' senior debt and deposit rating would be limited to a maximum of two notches.

"Pressure on asset quality across all asset classes is coming from the now deep recession in Spain, which is expected to continue throughout 2009 and into 2010," Moody's said in a statement. (Reporting by Jonathan Gleave; Editing by Dan Grebler)