Moody's Investors Service upgraded to Aa3 from A1 the long-term ratings and to B from B- the financial strength rating of Banco Santander Central Hispano, S.A. (Santander). The rating outlook is now stable. Also upgraded were the long-term ratings of Banco Español de Credito (Banesto) to Aa3 from A1 and the long-term ratings of Santander Consumer Finance to Aa3 from A1 -- both Spanish subsidiaries of Santander Central Hispano -- as well as the long-term ratings of Banco Totta & Acores (Portugal) to A1 from A2 and of Finconsumo (Italy) to A1 from A2. The rating outlooks are now stable.MOODY'S UPGRADES RATINGS OF BANCO SANTANDER CENTRAL HISPANO TO Aa3/B FROM A1/B-; SUBSIDIARIES' RATINGS ALSO UPGRADED; STABLE OUTLOOK ON NEW RATINGS
The ratings of Banco Santander Puerto Rico (BSPR) were also raised in connection with the upgrade of the bank’s parent. Moody’s upgraded BSPR’s rating for deposits to A1 from A2, the issuer rating to A1 from A2 and bank’s preferred stock to A3 from Baa1. At the same time, BSPR’s bank financial strength rating was confirmed at C. Moody’s added that the Puerto Rico bank is small relative to Santander’s consolidated assets and earnings. Nevertheless, the rating action reflects the probability of strong support from Santander should that become necessary. BSPR’s rating outlook is stable.
Moody's added that any adjustments in Santander's Latin American subsidiaries' ratings will be addressed shortly in a different press release.
According to Moody's, the ratings upgrade reflect the fact that the Santander group appears significantly better sheltered against its exposure to Brazilian risk than at the time when its ratings were lowered to reflect that risk -- more than a year ago. At that time, the rating agency had stated that, aside from the material Brazilian risk, the Spanish banking group's credit strength was fully compatible with a double-A rating.
Moody's noted the measures taken over the recent past by Santander to limit the structural risk for its earnings and economic capital of its large Brazilian investment -- ownership of Banespa. To some extent, these measures were already reflected by Moody's June 2003 outlook change to positive for Santander's ratings. In raising Santander's ratings back to Aa3, Moody's expressed its belief that the banking group's very strong and highly profitable position in the highly competitive Spanish financial services market, its growing pan-European franchise in consumer finance, as well as its good risk and cost controls -- including in Latin America -- should protect well its recurring earnings and economic capital against the remaining Brazilian risk. The rating agency also noted positively Santander's good track record in steering Banespa toward more efficiency and higher profitability.
Moody's concluded by cautioning again that it expects the Santander group to pursue a well-thought and risk-averse strategy in Latin America and avoid harming its overall risk-return profile.
The following ratings were upgraded:
Banco Santander Central Hispano, S.A. -- the long-term deposit rating and senior debt from A1 to Aa3, the issuer rating from A1 to Aa3, the rating on cedulas hipotecarias from Aa2 to Aa1, the rating on cedulas territoriales from Aa1 to Aaa, the financial strength rating from B-to B, and the subordinated debt rating from A2 to A1.
Santander Central Hispano Finance S.A. -- the rating on guaranteed preferred shares from A3 to A2
Santander Central Hispano Financial Services Limited -- the rating on guaranteed subordinated debt from A2 to A1.
Santander Central Hispano International Ltd. -- the rating on guaranteed senior debt from A1 to Aa3.
Santander Central Hispano Issuances -- the rating on guaranteed subordinated debt from A2 to A1.
BSCH Finance Limited -- the rating on guaranteed preferred shares from A3 to A2.
Santander Finance B.V. -- the rating on guaranteed subordinated debt from A2 to A1.
BCH Capital Limited -- the rating on guaranteed preferred shares from A3 to A2.
BCH Cayman Islands Limited -- the rating on guaranteed subordinated debt from A2 to A1.
BCH Eurocapital Limited -- the rating on guaranteed preferred shares from A3 to A2.
BCH Financial Services Limited -- the rating on guaranteed subordinated debt from A2 to A1
BCH International Finance Limited -- the rating on guaranteed senior debt from A1 to Aa3.
Santander Overseas Bank, Inc -- the rating on guaranteed preferred shares from A3 to A2.
Santander Consumer Finance, S.A. -- the rating on commercial paper from A1 to Aa3.
Banco Español de Credito, S.A. -- the bank deposit rating from A1 to Aa3 and the rating on cedulas hipotecarias from Aa2 to Aa1.
Banesto Finance Ltd. -- the rating on guaranteed subordinated debt from A2 to A1.
Banesto Holdings Ltd. -- the rating on guaranteed preferred shares from A3 to A2.
Banesto Issuances Ltd. -- the rating on senior subordinated debt from A1 to Aa3.
Banco Totta y Açores, S.A. -- the long-term deposit and senior debt ratings from A2 to A1.
Totta y Açores Financing Ltd. -- the rating on preferred shares from Baa1 to A3.
Finconsumo -- the long-term ratings from A2 to A1.
Banco Santander Puerto Rico -- long-term deposit rating from A2 to A1, the issuer rating from A2 to A1; and preferred stock from Baa1 to A3.
Santander Central Hispano is headquartered in Santander, Spain. In September 2003 total assets amounted to EUR345 billion.
© 2021 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.
CREDIT RATINGS ISSUED BY MOODY'S CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE APPLICABLE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS (“ASSESSMENTS”), AND OTHER OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.
MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.
ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.
MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.
All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.
NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.
Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody’s Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $5,000,000. MCO and Moody’s Investors Service also maintain policies and procedures to address the independence of Moody’s Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody’s Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com
under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”
Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.
Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.
MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY550,000,000.
MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.