Madrid, July 29, 2011 -- Moody's Investors Service has today placed on review for downgrade the
debt and deposit ratings of five Spanish banks, subsequent to the
rating agency's announcement on 29 July 2011 that the Aa2 bond rating
of the government of Spain was being placed on review for possible downgrade.
The corresponding short-term ratings of these banks (all Prime-1)
are unaffected by today's rating announcements.
The affected banks are Banco Santander, BBVA, CaixaBank (all
three banks rated Aa2/P-1/B-, mapping to A1 on the
long-term scale), La Caixa (issuer rating at A1) and Confederación
Española de Cajas de Ahorros (CECA) (rated A1/P-1/C,
mapping to A3 on the long-term rating scale).
In addition, Moody's has also placed on review for downgrade
(i) the senior subordinated debt of these entities; (ii) all rated
government-backed debt issuances from Spanish banks; and (iii)
the rated long-term debt of Instituto de Credito Oficial (ICO),
the ratings of which are based on the unconditional and irrevocable guarantee
from the Spanish Government.
RATIONALE FOR THE REVIEW OF SENIOR AND SUBORDINATED DEBT RATINGS
Moody's bank rating reviews have been prompted by its concurrent review
of the Spanish government's bond ratings, which, in
the absence of any unexpected negative developments during the review
process, is most likely to be limited to one notch.
When a sovereign's credit worthiness diminishes, Moody's
reassesses the capacity of the sovereign to provide systemic support to
domestic banks. In this case, a potential downgrade of the
Spanish government rating would affect only the debt and deposit ratings
of banks that have high standalone ratings and that Moody's believes
benefit from high levels of systemic support. These banks are Banco
Santander, BBVA, Caixabank (all of which have standalone ratings
of B-/A1) and CECA (which has a standalone rating of C/A3).
In a scenario where the sovereign would be rated at or close to the above
mentioned banks' standalone ratings, the benefit of any assumed
government support would be diminished. However, even if
the sovereign rating should be downgraded, Moody's will continue
to factor in at least one notch of systemic support for these banks to
reflect the high likelihood that support would be forthcoming.
Any downgrade of these banks' senior ratings would also have an
impact on the banks' senior subordinated ratings, which are
notched-off the senior ratings to reflect their legal subordination.
For this reason, Moody's has also placed the ratings of these instruments
on review for downgrade for these five banks.
The A1 debt ratings of La Caixa, Caixabank's holding company,
are notched off the long-term debt rating of Caixabank and would
therefore be affected by any downgrade of Caixabank; they have therefore
also been placed on review for possible downgrade.
BANKS UNAFFECTED BY RATING ANNOUNCEMENTS
The ratings of other banks that Moody's considers have a high likelihood
of systemic support would not be affected by a one notch downgrade of
the Spanish sovereign rating. Their long-term ratings are
some way below the likely outcome of the sovereign review, and the
sovereign review is unlikely to identify a weakening of the government's
financial strength to an extent that it would preclude a continuation
of these support levels. Those banks will continue to benefit from
one or two notches of systemic support uplift.
Similarly, banks that are considered less systemically important
by Moody's, and whose ratings benefit from only a one-notch
uplift, are not expected to be affected by the sovereign rating
review. Their standalone credit profile is the key driver of their
debt rating, and a potentially marginally weaker sovereign should
not significantly affect their overall creditworthiness or the one-notch
systemic support uplift of their ratings.
REVIEW OF GOVERNMENT GUARANTEED DEBT
As a direct consequence of the concurrent review for possible downgrade
of the Spanish government's Aa2 bond rating, Moody's has also
placed the backed-Aa2 rated senior debt of 19 institutions on review
for downgrade. The backed-Aa2 ratings assigned are based
on the unconditional guarantee which directly links them to the ratings
of the Spanish government. (See "Moody's to assign backed Aaa ratings
to new euro-denominated long-term debt securities covered
by Spanish government's guarantee," published on 22 January 2009.)
REVIEW OF ICO's RATINGS
Moody's has also placed on review for downgrade all rated debt of Instituto
de Credito Oficial (ICO). Since ICO's liabilities are explicitly,
irrevocably, directly and unconditionally guaranteed by the government
of Spain, the rating review of ICO is triggered by the review process
initiated for the sovereign's ratings.
All other ratings of Spanish banks are not affected by this rating action.
The following ratings have been affected by the placing on review for
possible downgrade of the Spanish government:
Issuer: Banca March S.A. ,
..On Review for Possible Downgrade:
....Senior Unsecured Medium-Term Note
Program, Placed on Review for Possible Downgrade, currently
(P)Aa2
Issuer: Banco Bilbao Vizcaya Argentaria, S.A.
,
..On Review for Possible Downgrade:
.... Issuer Rating, Placed on Review
for Possible Downgrade, currently Aa2
....Multiple Seniority Medium-Term
Note Program, Placed on Review for Possible Downgrade, currently
a range of (P)Aa3 to (P)Aa2
....Multiple Seniority Medium-Term
Note Program, Placed on Review for Possible Downgrade, currently
a range of (P)Aa3 to (P)Aa2
....Subordinate Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa3
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
....Senior Unsecured Deposit Rating,
Placed on Review for Possible Downgrade, currently Aa2
....Senior Unsecured Deposit Rating,
Placed on Review for Possible Downgrade, currently Aa2
..Outlook Actions:
....Outlook, Changed To Rating Under
Review From Negative
Issuer: Banco Bilbao Vizcaya Argentaria, SA London Br ,
..On Review for Possible Downgrade:
....Senior Unsecured Deposit Rating,
Placed on Review for Possible Downgrade, currently Aa2
....Senior Unsecured Deposit Rating,
Placed on Review for Possible Downgrade, currently Aa2
..Outlook Actions:
....Outlook, Changed To Rating Under
Review From Negative
Issuer: Banco CAM ,
..On Review for Possible Downgrade:
....Senior Unsecured Medium-Term Note
Program, Placed on Review for Possible Downgrade, currently
(P)Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
Issuer: Banco Cooperativo Espanol, S.A. ,
..On Review for Possible Downgrade:
....Senior Unsecured Medium-Term Note
Program, Placed on Review for Possible Downgrade, currently
(P)Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
Issuer: Banco de Credito Local de Espana, S.A.
,
..On Review for Possible Downgrade:
....Multiple Seniority Medium-Term
Note Program, Placed on Review for Possible Downgrade, currently
(P)Aa2
..Outlook Actions:
....Outlook, Changed To Rating Under
Review From Negative
Issuer: Banco Financiero y de Ahorro ,
..On Review for Possible Downgrade:
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
Issuer: Banco Pastor, S.A. ,
..On Review for Possible Downgrade:
....Senior Unsecured Medium-Term Note
Program, Placed on Review for Possible Downgrade, currently
(P)Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
Issuer: Banco Popular Espanol, S.A. ,
..On Review for Possible Downgrade:
....Senior Unsecured Medium-Term Note
Program, Placed on Review for Possible Downgrade, currently
(P)Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
Issuer: Banco Sabadell, S.A. ,
..On Review for Possible Downgrade:
....Senior Unsecured Medium-Term Note
Program, Placed on Review for Possible Downgrade, currently
(P)Aa2
Issuer: Banco Santander S.A. (Spain) ,
..On Review for Possible Downgrade:
.... Issuer Rating, Placed on Review
for Possible Downgrade, currently Aa2
....Multiple Seniority Medium-Term
Note Program, Placed on Review for Possible Downgrade, currently
(P)Aa3, (P)Aa2
....Multiple Seniority Medium-Term
Note Program, Placed on Review for Possible Downgrade, currently
(P)Aa3, (P)Aa2
....Subordinate Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa3
....Senior Unsecured Deposit Rating,
Placed on Review for Possible Downgrade, currently Aa2
....Senior Unsecured Deposit Rating,
Placed on Review for Possible Downgrade, currently Aa2
..Outlook Actions:
....Outlook, Changed To Rating Under
Review From Negative
Issuer: Banco Santander, S.A., London
Branch ,
..On Review for Possible Downgrade:
....Senior Unsecured Deposit Program,
Placed on Review for Possible Downgrade, currently (P)Aa2
..Outlook Actions:
....Outlook, Changed To Rating Under
Review From Negative
Issuer: Bankia ,
..On Review for Possible Downgrade:
....Senior Unsecured Medium-Term Note
Program, Placed on Review for Possible Downgrade, currently
(P)Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
Issuer: Bankinter, S.A. ,
..On Review for Possible Downgrade:
....Senior Unsecured Medium-Term Note
Program, Placed on Review for Possible Downgrade, currently
(P)Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
Issuer: BBVA Capital Funding Limited ,
..On Review for Possible Downgrade:
....Multiple Seniority Medium-Term
Note Program, Placed on Review for Possible Downgrade, currently
(P)Aa3
....Subordinate Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa3
....Subordinate Shelf, Placed on Review
for Possible Downgrade, currently (P)Aa3
..Outlook Actions:
....Outlook, Changed To Rating Under
Review From Negative
Issuer: BBVA Global Finance Ltd. ,
..On Review for Possible Downgrade:
....Multiple Seniority Medium-Term
Note Program, Placed on Review for Possible Downgrade, currently
(P)Aa2
....Subordinate Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa3
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
....Senior Unsecured Shelf, Placed on
Review for Possible Downgrade, currently (P)Aa2
..Outlook Actions:
....Outlook, Changed To Rating Under
Review From Negative
Issuer: BBVA Global Markets B.V. ,
..On Review for Possible Downgrade:
....Senior Unsecured Medium-Term Note
Program, Placed on Review for Possible Downgrade, currently
(P)Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
..Outlook Actions:
....Outlook, Changed To Rating Under
Review From Negative
Issuer: BBVA Senior Finance, S.A. Unipersonal
,
..On Review for Possible Downgrade:
....Senior Unsecured Medium-Term Note
Program, Placed on Review for Possible Downgrade, currently
(P)Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
..Outlook Actions:
....Outlook, Changed To Rating Under
Review From Negative
Issuer: BBVA Subordinated Capital, S.A. Unipersonal
,
..On Review for Possible Downgrade:
....Multiple Seniority Medium-Term
Note Program, Placed on Review for Possible Downgrade, currently
(P)Aa3
....Subordinate Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa3
....Subordinate Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa3
..Outlook Actions:
....Outlook, Changed To Rating Under
Review From Negative
Issuer: BBVA U.S. Senior, S.A.
Unipersonal ,
..On Review for Possible Downgrade:
....Senior Unsecured Medium-Term Note
Program, Placed on Review for Possible Downgrade, currently
(P)Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
..Outlook Actions:
....Outlook, Changed To Rating Under
Review From Negative
Issuer: BCL International Finance Limited ,
..On Review for Possible Downgrade:
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
Issuer: Caixa Catalunya, Tarragona i Manresa ,
..On Review for Possible Downgrade:
....Senior Unsecured Medium-Term Note
Program, Placed on Review for Possible Downgrade, currently
(P)Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
Issuer: Caixa d'Estalvis de Manresa (Caixa Manresa) ,
..On Review for Possible Downgrade:
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
Issuer: Caixa Finance B.V. ,
..On Review for Possible Downgrade:
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
..Outlook Actions:
....Outlook, Changed To Rating Under
Review From Negative
Issuer: Caixabank ,
..On Review for Possible Downgrade:
.... Issuer Rating, Placed on Review
for Possible Downgrade, currently Aa2
....Multiple Seniority Medium-Term
Note Program, Placed on Review for Possible Downgrade, currently
a range of (P)Aa3 to (P)Aa2
....Multiple Seniority Medium-Term
Note Program, Placed on Review for Possible Downgrade, currently
a range of (P)Aa3 to (P)Aa2
....Subordinate Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa3
....Senior Unsecured Medium-Term Note
Program, Placed on Review for Possible Downgrade, currently
(P)Aa2
....Senior Unsecured Medium-Term Note
Program, Placed on Review for Possible Downgrade, currently
(P)Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
....Senior Unsecured Deposit Rating,
Placed on Review for Possible Downgrade, currently Aa2
....Senior Unsecured Deposit Rating,
Placed on Review for Possible Downgrade, currently Aa2
..Outlook Actions:
....Outlook, Changed To Rating Under
Review From Negative
Issuer: Caixanova ,
..On Review for Possible Downgrade:
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
Issuer: Caja de Ahorros de Galicia, Vigo, O.
y P. ,
..On Review for Possible Downgrade:
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
Issuer: Caja de Ahorros de Santander y Cantabria ,
..On Review for Possible Downgrade:
....Senior Unsecured Medium-Term Note
Program, Placed on Review for Possible Downgrade, currently
(P)Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
Issuer: Caja de Ahorros y Pensiones de Barcelona ,
..On Review for Possible Downgrade:
.... Issuer Rating, Placed on Review
for Possible Downgrade, currently A1
....Subordinate Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently A2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
..Outlook Actions:
....Outlook, Changed To Rating Under
Review From Negative
Issuer: Caja Espana de Inversiones, Salamanca y Soria ,
..On Review for Possible Downgrade:
....Senior Unsecured Medium-Term Note
Program, Placed on Review for Possible Downgrade, currently
(P)Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
Issuer: Cajamar Caja Rural, Soc. Coop. de Credito
,
..On Review for Possible Downgrade:
....Senior Unsecured Medium-Term Note
Program, Placed on Review for Possible Downgrade, currently
(P)Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
Issuer: Confederacion Espanola de Cajas de Ahorro ,
..On Review for Possible Downgrade:
....Senior Unsecured Deposit Rating,
Placed on Review for Possible Downgrade, currently A1
....Senior Unsecured Deposit Rating,
Placed on Review for Possible Downgrade, currently A1
..Outlook Actions:
....Outlook, Changed To Rating Under
Review From Negative
Issuer: Ibercaja ,
..On Review for Possible Downgrade:
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
Issuer: Instituto de Credito Oficial ,
..On Review for Possible Downgrade:
....Senior Unsecured Commercial Paper,
Placed on Review for Possible Downgrade, currently Aa2
....Senior Unsecured Medium-Term Note
Program, Placed on Review for Possible Downgrade, currently
(P)Aa2
....Senior Unsecured Medium-Term Note
Program, Placed on Review for Possible Downgrade, currently
(P)Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
....Senior Unsecured Shelf, Placed on
Review for Possible Downgrade, currently (P)Aa2
..Outlook Actions:
....Outlook, Changed To Rating Under
Review From Negative
Issuer: Lico Leasing, S.A. ,
..On Review for Possible Downgrade:
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
Issuer: Santander Central Hispano International Ltd ,
..On Review for Possible Downgrade:
....Senior Unsecured Medium-Term Note
Program, Placed on Review for Possible Downgrade, currently
(P)Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
..Outlook Actions:
....Outlook, Changed To Rating Under
Review From Negative
Issuer: Santander Central Hispano Issuances Ltd. ,
..On Review for Possible Downgrade:
....Multiple Seniority Medium-Term
Note Program, Placed on Review for Possible Downgrade, currently
(P)Aa3
....Subordinate Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa3
....Subordinate Shelf, Placed on Review
for Possible Downgrade, currently (P)Aa3
..Outlook Actions:
....Outlook, Changed To Rating Under
Review From Negative
Issuer: Santander Int'l Debt, S.A. Unipersonal
,
..On Review for Possible Downgrade:
....Multiple Seniority Medium-Term
Note Program, Placed on Review for Possible Downgrade, currently
(P)Aa2
....Multiple Seniority Medium-Term
Note Program, Placed on Review for Possible Downgrade, currently
(P)Aa2
....Senior Unsecured Medium-Term Note
Program, Placed on Review for Possible Downgrade, currently
(P)Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
..Outlook Actions:
....Outlook, Changed To Rating Under
Review From Negative
Issuer: Santander Issuances S.A. Unipersonal ,
..On Review for Possible Downgrade:
....Multiple Seniority Medium-Term
Note Program, Placed on Review for Possible Downgrade, currently
(P)Aa3
....Subordinate Medium-Term Note Program,
Placed on Review for Possible Downgrade, currently (P)Aa3
....Subordinate Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa3
....Subordinate Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa3
....Subordinate Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa3
....Subordinate Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa3
..Outlook Actions:
....Outlook, Changed To Rating Under
Review From Negative
Issuer: Santander US Debt, S.A. Unipersonal
,
..On Review for Possible Downgrade:
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
..Outlook Actions:
....Outlook, Changed To Rating Under
Review From Negative
Issuer: Unicaja ,
..On Review for Possible Downgrade:
....Senior Unsecured Medium-Term Note
Program, Placed on Review for Possible Downgrade, currently
(P)Aa2
....Senior Unsecured Regular Bond/Debenture,
Placed on Review for Possible Downgrade, currently Aa2
The principal methodologies used in this rating were Bank Financial Strength
Ratings: Global Methodology published in February 2007, and
Incorporation of Joint-Default Analysis into Moody's Bank Ratings:
A Refined Methodology published in March 2007. Please see the Credit
Policy page on www.moodys.com for a copy of these methodologies.
Please see ratings tab on the issuer/entity page on Moodys.com
for the last rating action and the rating history.
Madrid
Maria Cabanyes
Senior Vice President
Financial Institutions Group
Moody's Investors Service Espana, S.A.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
London
Johannes Wassenberg
MD - Banking
Financial Institutions Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Moody's Investors Service Espana, S.A.
Calle Principe de Vergara, 131, 6 Planta
Madrid 28002
Spain
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Moody's reviews highest-rated Spanish banks further to sovereign rating review
