Moody,s Investors Service upgraded Argentaria, Caja Postal y Banco Hipotecario, S.A. (Argentaria)'s and Banco de Cr‚dito Local, S.A. (BCL)'s Aa3 long-term debt and deposit ratings to Aa2, following final confirmation of Argentaria's merger with Banco Bilbao Vizacaya, S.A. (rated Aa2/P-1/B+). The merger was completed on January 28, with the creation of BBVA, S.A. as a legal entity replacing the two banks. Following this, all the credit ratings on Argentaria will be withdrawn and all the credit ratings of BBV, S.A. will be transferred to the newly-created BBVA, S.A. The outlook for BBVA's ratings is stable.MOODY'S UPGRADES THE Aa3 LONG-TERM DEBT AND DEPOSIT RATINGS OF ARGENTARIA AND ITS SUBSIDIARY BANCO DE CREDITO LOCAL (BCL) TO Aa2 AND ANNOUNCES FORTHCOMING WITHDRAWAL OF ARGENTARIA's RATINGS FOLLOWING THE COMPLETION OF ARGENTARIA's MERGER WITH BBV; BBV's C
The following ratings will be transfered to BBVA, S.A. from BBV, S.A.:
Banco Bilbao Vizcaya, S.A. -- the Prime-1 rating for short-term deposits and commercial paper, the Aa2 rating for long-term deposits and for senior domestic bonds, the Aa3 rating for domestic subordinated bonds, the B+ financial strength rating and the Aa2 issuer rating, and the Aaa rating for cedulas hipotecarias (mortgage certificates).
BBV International Finance Ltd. -- the Aa2/Prime-1rating for guaranteed senior obligations and the Aa3 rating for guaranteed subordinated obligations.
BBV Finance (Delaware), Inc. -- the Prime-1 rating for commercial paper.
Banco Bilbao Vizcaya Int'l (Gibraltar) -- the "aa3" rating for guaranteed preferred stock.
Bilbao Vizcaya International Ltd. -- the "aa3" rating for guaranteed preferred stock.
Bilbao Vizcaya Investments B.V. -- the Aa3 rating for guaranteed convertible subordinated eurobonds.
The following ratings were upgraded and will be withdrawn:
Argentaria, Caja Postal y Banco Hipotecario, S.A. (Argentaria) -- the Aa3 rating for long-term deposits to Aa2, the B financial strength rating to B+ and the Aa1 rating for cedulas hipotecarias (mortgage certificates) to Aaa.
Argentaria Global Finance Ltd. -- long-term senior unsecured debt guaranteed by Argentaria to Aa2 from Aa3.
Argentaria Capital Funding Ltd. -- long-term subordinated debt guaranteed by Argentaria to Aa3 from A1 and preferred stock guaranteed by Argentaria to "aa3" from "a1".
Argentaria Preferred Capital Ltd. -- preferred stock guaranteed by Argentaria to "aa3" from "a1".
The following other ratings will be withdrawn:
Argentaria, Caja Postal y Banco Hipotecario, S.A. -- the Prime-1 rating for short-term deposits.
Argentaria Commercial Paper Ltd. -- the Prime-1 rating for commercial paper.
Argentaria Global Finance Ltd. -- the Prime-one rating for guaranteed short-term debt.
The following ratings were upgraded:
Banco de Credito Local, S.A. -- the rating for long-term deposits to Aa2 from Aa3.
BCL International Finance Ltd. -- long-term senior unsecured debt guaranteed by BCL to Aa2 from Aa3.
BBV, S.A., headquartered in Bilbao, Spain, had total assets of Ptas. 38 trillion (approx. Euro 226 billion) at end-September 1999. Argentaria, Caja Postal y Banco Hipotecario, S.A., headquartered in Madrid, Spain, had total assets of Ptas. 13 trillion (approx. Euro 77 billion) at end-June 1999. Also headquartered in Madrid, Spain, Banco de Credito Local, S.A. had Ptas. 1.5 trillion (about Euro 9 billion) in total assets at end-December 1998.
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