BANKIA SA (PINK:BNKXF)’s stock value has been practically wiped out by its recapitalization plan. The bank’s stock fell today, the first day it has been traded since regulators took away most of its value on Friday. Shares of Bankia closed out the trading day at 14.7 euro cents, which was a 41 percent drop from Friday’s close.

Bankia

DealBook reports that on Friday, regulators ruled that shares of BANKIA SA (PINK:BNKXF) would be reduced to 1 cent each. The goal of the revaluation was to help it start over. It was also a requirement as part of the bank’s 10.7 billion euro bail out.

Standard & Poor’s also reduced the bank’s credit rating to BB-, which is three levels below investment grade. The rating company said BANKIA SA (PINK:BNKXF) will probably continue to depend on central bank funds for now. It also said that the bank’s decision to raise capital by turning 6.5 billion euros of hybrid debt into equity, did not work out as well as it expected.

Bankia’s February losses amounted to 19.2 billion euros last year. That was a record for the banking industry in Spain. However, the bank became profitable after cleaning up its balance sheet and making use of bailout funds. The bailout requested by the bank was the largest in Spanish history.

Experts believe BANKIA SA (PINK:BNKXF)’s stock will fall even further because of the dilution of its stock. The Financial Times reports that authorities plan to do a reverse stock split to bundle shares into 1 euro bundles because the stock can’t fall below 1 cent euro. There’s no word on when that reverse stock split might occur.