Rating actions follow the upgrade of Spain's government bond rating to Baa1
Madrid, April 17, 2018 -- Moody's Investors Service has today taken rating actions on 12 Spanish
banking groups. The rating agency has upgraded the long-term
deposit ratings of six banks and the senior unsecured debt and/or senior
unsecured debt programme ratings of five banks, as well as the counterparty
risk assessment (CRA) of eight institutions. The rating actions
were prompted by the upgrade of Spain's government bond rating to
Baa1 from Baa2 on 13 April 2018 (for further details please see https://www.moodys.com/research/--PR_381868).
Among the actions taken today by Moody's on the affected banks are the
following:
- Banco Santander, S.A. (Spain) (Banco Santander):
deposits upgraded to A2/Prime-1 from A3/Prime-2, senior
unsecured debt programme ratings upgraded to (P)A2 from (P)A3 respectively.
Long-term issuer rating upgraded to A2 from A3. The outlook
on the long-term ratings remains stable. CRA affirmed at
A3(cr)/Prime-2(cr).
- Banco Bilbao Vizcaya Argentaria, S.A. (BBVA):
deposit ratings affirmed at A3/Prime-2, long-term
senior unsecured debt ratings affirmed at Baa1 and outlook on the long-term
ratings changed to positive from stable. Long-term CRA upgraded
to A3(cr) from Baa1(cr) and short-term CRA affirmed at Prime-2(cr).
- CaixaBank, S.A. (CaixaBank): long-term
deposit ratings upgraded to Baa1 from Baa2 and outlook changed to stable
from positive. Short-term deposit ratings affirmed at Prime-2.
Senior unsecured debt ratings affirmed at Baa2 and outlook changed to
positive from stable.
- Bankia, S.A. (Bankia): deposit ratings
upgraded to Baa2/Prime-2 from Baa3/Prime-3, long-term
senior unsecured debt ratings upgraded to Baa3 from Ba1, and outlook
on the long-term ratings changed to stable from developing.
BCA and adjusted BCA affirmed at ba2. Long-term CRA upgraded
to Baa1(cr) from Baa2(cr). Short-term CRA affirmed at Prime-2(cr).
- Banco Sabadell, S.A. (Banco Sabadell):
deposit ratings affirmed at Baa2/Prime-2 and outlook on the long-term
deposit ratings changed to positive from stable. Long-term
CRA upgraded to Baa1(cr) from Baa2(cr). Short-term CRA affirmed
at Prime-2(cr).
- Banco Popular Espanol, S.A. (Banco Popular):
deposit ratings upgraded to Baa2/Prime-2 from Baa3/Prime-3,
senior unsecured debt programme ratings upgraded to (P)Baa2 from (P)Baa3.
The outlook on the long-term deposit ratings remains positive.
CRA upgraded to Baa2(cr)/Prime-2(cr) from Baa3(cr)/Prime-3(cr).
- Santander Consumer Finance S.A. (SCF): deposits
ratings upgraded to A2/Prime-1 from A3/Prime-2 and long-term
senior unsecured debt ratings upgraded to A2 from A3. The outlook
on the long-term ratings remains stable. CRA affirmed at
A3(cr)/Prime-2(cr).
- Bankinter, S.A. (Bankinter): long-term
CRA upgraded to A3(cr) from Baa1(cr). Short-term CRA affirmed
at Prime-2(cr).
- Kutxabank, S.A. (Kutxabank): long-term
CRA upgraded to A3(cr) from Baa1(cr). Short-term CRA affirmed
at Prime-2(cr).
- Instituto de Credito Oficial (ICO): long-term senior
unsecured debt ratings upgraded to Baa1 from Baa2. Short-term
Commercial Paper ratings affirmed at Prime-2.
- Banca March S.A. (Banca March): long-term
CRA upgraded to A3(cr) from Baa1(cr). Short-term CRA affirmed
at Prime-2(cr).
- Caja Rural de Navarra: long-term deposit ratings
upgraded to Baa1 from Baa2. The outlook on these ratings remains
stable. Short-term deposit ratings affirmed at Prime-2.
BCA and adjusted BCA upgraded to baa1 from baa2. Long-term
CRA upgraded to A3(cr) from Baa1(cr). Short-term CRA affirmed
at Prime-2(cr) .
The ratings, outlooks and rating inputs of other Moody's rated Spanish
banks are unaffected by today's rating action.
A full list of the affected ratings can be found at the end of this press
release.
RATINGS RATIONALE
-- BANCO SANTANDER AND SCF
Moody's has upgraded to A2/Prime-1 from A3/Prime-2
the deposit ratings, to (P)A2 from (P)A3 the senior unsecured debt
programme ratings of Banco Santander and to A2 from A3 the senior unsecured
debt ratings of SCF. Before the upgrade of Spain's sovereign
rating, these ratings already exceeded the Spanish sovereign rating
by two notches, and were constrained at that level under Moody's
methodology. The upgrade of Spain's sovereign rating by one
notch has therefore translated into a one notch upgrade of these ratings.
The outlook on the long-term deposit and senior unsecured debt/issuer
ratings, where applicable, remains stable.
-- BBVA
Moody's has affirmed the deposit ratings of BBVA at A3/Prime-2
and senior unsecured debt ratings at Baa1 respectively, and changed
the outlook on the long-term ratings to positive from stable.
The outlook change reflects the bank's balance sheet structure at
end-December 2017 as well as Moody's expectation that BBVA
will continue to issue bail-in-able debt through 2020 in
order to meet its minimum requirement for own funds and eligible liabilities
(MREL). Moody's expects that BBVA will complete its medium-term
issuance plan -- which entails the refinancing of its covered
bond and senior debt redemptions amounting to EUR8.8 billion,
with junior senior instruments -- based upon its public
commitment to the plan and the bank's continued good access to the
capital markets.
-- CAIXABANK
Moody's has upgraded the long-term deposit ratings of CaixaBank
to Baa1 from Baa2 and changed the outlook to stable from positive.
The bank's short-term deposit ratings have been affirmed
at Prime-2. Concurrently, the rating agency has affirmed
the long-term senior unsecured debt ratings of CaixaBank at Baa2
and changed the outlook on these ratings to positive from stable.
CaixaBank's long-term deposit and senior unsecured debt ratings
of Baa1/Baa2 reflect: (1) the bank's BCA of ba1; (2) a two-notch
and one-notch rating uplift, respectively, from Moody's
Advanced LGF analysis; and (3) Moody's assumption of a moderate
probability of government support from Spain, which translates into
a one-notch uplift for both ratings. Following the upgrade
of Spain's sovereign rating, CaixaBank's deposit ratings
now benefit from one notch of government support. Previously,
they were rated at the same level of the sovereign and, consequently,
benefited from no government support uplift.
The positive outlook on CaixaBank's long-term senior unsecured
debt rating reflects Moody's expectation that the bank's credit
profile will continue to improve over the next 12-18 months.
The stable outlook on Caixabank's long-term deposit ratings
reflects Moody's view that any upward pressure on the bank's
standalone BCA will not translate into an improvement in the bank's
Baa1 deposit ratings. At this level, Caixabank's deposit
ratings will benefit from the uplift from Moody's LGF analysis but
no uplift from the moderate government support assumptions, because
the bank's deposit ratings are now aligned with Spain's sovereign
rating.
-- BANKIA
Moody's has upgraded Bankia's deposit ratings to Baa2/Prime-2 from
Baa3/Prime-3 and its long-term senior unsecured debt rating
to Baa3 from Ba1 and has changed the outlook on the long-term ratings
to stable from developing.
The upgrade of the ratings reflects: (1) the affirmation of the
bank's BCA at ba2; (2) Moody's updated Advanced LGF analysis
that now provides a two-notch uplift for deposits and one-notch
uplift for senior debt from the bank's ba2 adjusted BCA; and (3)
Moody's assumption of moderate government support from Spain, which
results in a one-notch uplift for both the deposit and senior debt
ratings.
Bankia's ba2 BCA reflects Moody's expectation of an improvement
in its credit fundamentals, notably in terms of asset risk,
capital and profitability. Bankia's BCA remains constrained by:
(1) still high volumes of problematic exposures; and (2) weaker capital
metrics following the merger with Banco Mare Nostrum, S.A.
The BCA also reflects Bankia's successful de-risking track record
and its proven strong capital generation capacity.
The upgrade of Bankia's debt and deposit ratings is also driven
by changes to Moody's Advanced LGF analysis, which now indicates
a very low-loss-given failure for deposits, and a
low loss-given-failure for senior unsecured debt,
following the issuance of EUR500 million of subordinated debt and EUR750
million of Additional Tier 1 bonds in 2017.
The outlook on Bankia's long-term debt and deposit ratings is now
stable, reflecting Moody's view that the current ratings already
capture the expected performance of the bank's financial fundamentals.
-- BANCO SABADELL
Moody's has affirmed the deposit ratings of Banco Sabadell at Baa2/Prime-2
and changed the outlook on the long-term ratings to positive from
stable. The bank's long-term senior unsecured debt
ratings of Baa3 with positive outlook remain unchanged.
Banco Sabadell's long-term deposit and senior unsecured debt
ratings of Baa2/Baa3 reflect: (1) the bank's BCA of ba2; (2)
a two-notch and one-notch rating uplift, respectively,
from Moody's Advanced LGF analysis; and (3) Moody's assumption
of a moderate probability of government support from Spain, which
translates into a one-notch uplift for both ratings.
The positive outlook on Banco Sabadell's long-term deposit
and senior unsecured debt ratings reflects Moody's expectation that
the bank's credit profile will continue to improve over the next
12-18 months.
-- BANCO POPULAR
Moody's has upgraded the deposit ratings of Banco Popular to Baa2/Prime-2
from Baa3/Prime-3 and the long-term senior unsecured debt
programme rating to (P)Baa2 from (P)Baa3. The outlook on the long-term
deposit ratings remains positive.
The upgrade of the long-term deposit and senior unsecured debt
programme ratings to Baa2 and (P)Baa2 respectively reflects: (1)
the bank's BCA of caa1; (2) a very high likelihood of affiliate
support from its parent Banco Santander, resulting in a four-notch
uplift and an adjusted BCA of ba3; (3) the three-notches of
uplift from Moody's Advanced LGF analysis of Banco Santander;
and (4) Moody's assumption of a moderate probability of support
from Spain's government, in line with Moody's assumption
for the whole Banco Santander group. Following the upgrade of Spain's
sovereign rating, Banco Popular's deposit and senior unsecured
programme ratings will benefit from one notch of government support,
from no government support uplift previously.
The positive outlook on Banco Popular's long-term deposit
ratings primarily reflects the potential for the bank's risk profile
to improve, and for its ratings to converge with those of its parent
over time as the integration of its business and operations into the group
progresses.
-- CAJA RURAL DE NAVARRA
Moody's has upgraded Caja Rural de Navarra's long-term deposit
ratings to Baa1 from Baa2 with a stable outlook.
The upgrade of the ratings reflects: (1) the upgrade of the bank's
BCA and adjusted BCA to baa1 from baa2; (2) Moody's Advanced LGF
analysis that results in no uplift for deposits from the bank's baa1 adjusted
BCA; and (3) Moody's assumption of a low probability of government
support from Spain, which also results in no uplift for the bank's
deposit ratings.
Moody's decision to upgrade Caja Rural de Navarra's BCA to
baa1 follows the upgrade of Spain's sovereign rating to Baa1,
which has lifted the constraint on the bank's BCA at baa2.
As per Moody's methodology, a bank's BCA will not typically
exceed the sovereign rating without any factor that reduces the dependency
between the creditworthiness of the bank and the sovereign. Caja
Rural de Navarra's BCA of baa1 reflects the bank's solid credit
fundamentals, namely its strong asset quality indicators,
comfortable capital levels and adequate funding and liquidity profile.
The outlook on Caja Rural de Navarra's long-term deposit ratings
is stable, reflecting Moody's view that the current ratings already
capture the expected performance of the bank's financial fundamentals.
-- INSTITUTO DE CREDITO OFICIAL
Moody's has upgraded to Baa1 from Baa2 the backed long-term
senior unsecured debt ratings of ICO. The bank's short-term
Commercial Paper ratings have been affirmed at Prime-2.
Given that ICO's liabilities are explicitly, irrevocably,
directly and unconditionally guaranteed by the Government of Spain,
the upgrade of the long-term debt ratings to Baa1 with a stable
outlook follows the change in Spain's sovereign ratings.
-- COUNTERPARTY RISK ASSESSMENTS
According to Moody's methodology, the CRA will not typically
exceed the sovereign's own rating by more than one notch, or two
notches where the adjusted BCA is already above the sovereign rating.
The upgrade of Spain's sovereign rating by one notch has therefore
translated into a one notch upgrade of the long-term CRA of BBVA,
Bankinter, Kutxabank, Banca March and Caja Rural de Navarra.
At A3(cr)/Prime-2(cr), the CRAs of Banco Santander and SCF
remain constrained by the sovereign rating, and have been affirmed
at that level.
The CRAs of Bankia, Banco Sabadell and Banco Popular now benefit
from one notch of government support, instead of no government support
uplift previously.
FACTORS THAT COULD LEAD TO AN UPGRADE
The banks' standalone BCAs could be upgraded as a consequence of a sustained
recovery in recurrent profitability levels, while maintaining current
improving trends of asset risk indicators, with an ongoing reduction
in the stock of problematic assets. The banks' BCAs could also
be upgraded on the back of stronger Tangible Common Equity (TCE) levels.
As the banks' debt and deposit ratings are linked to the standalone BCA,
any change to the BCA would likely also affect these ratings.
The banks' deposit and senior debt ratings could also experience
upward pressure from movements in the loss-given-failure
faced by these securities.
FACTORS THAT COULD LEAD TO A DOWNGRADE
Downward pressure on the banks' BCAs could develop as a result of:
(1) the reversal in current asset risk trends with an increase in the
stock of nonperforming loans (NPLs) and/or other problematic exposures;
(2) a weakening of banks' internal capital-generation and risk-absorption
capacity as a result of subdued profitability levels; and/or (3)
a deterioration in the banks' liquidity position.
As the banks' debt and deposit ratings are linked to the standalone BCA,
any change to the BCA would likely also affect these ratings.
The bank's deposit and senior debt ratings could also experience downward
pressure from movements in the loss-given-failure faced
by these securities.
LIST OF AFFECTED RATINGS
Issuer: Banco Santander S.A. (Spain)
..Upgrade:
....Long-term Issuer Rating,
upgraded to A2 Stable from A3 Stable
....Long-term Bank Deposits,
upgraded to A2 Stable from A3 Stable
....Short-term Bank Deposits,
upgraded to P-1 from P-2
....Senior Unsecured Medium-Term Note
Program, upgraded to (P)A2 from (P)A3
....Senior Unsecured Shelf, upgraded
to (P)A2 from (P)A3
....Commercial Paper, upgraded to P-1
from P-2
..Affirmations:
....Long-term Counterparty Risk Assessment,
affirmed A3(cr)
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
..Outlook Action:
....Outlook remains Stable
Issuer: Santander International Products PLC
..Upgrades:
....Backed Senior Unsecured Regular Bond/Debenture,
upgraded to A2 Stable from A3 Stable
....Backed Senior Unsecured Medium-Term
Note Program, upgraded to (P)A2 from (P)A3
....Backed Commercial Paper, upgraded
to P-1 from P-2
....Backed Other Short Term, upgraded
to (P)P-1 from (P)P-2
..Outlook Action:
....Outlook remains Stable
Issuer: Banco Santander, S.A., London
Branch
..Upgrades:
....Long-term Deposit Note/CD Program,
upgraded to (P)A2 from (P)A3
....Short-term Deposit Note/CD Program,
upgraded to (P)P-1 from (P)P-2
..Affirmations:
....Long-term Counterparty Risk Assessment,
affirmed A3(cr)
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
..No Outlook assigned
Issuer: Emisora Santander Espana S.A.U
..Upgrades:
....Backed Senior Unsecured Medium-Term
Note Program, upgraded to (P)A2 from (P)A3
....Backed Senior Unsecured Regular Bond/Debenture,
upgraded to A2 Stable from A3 Stable
..Outlook Action:
....Outlook remains Stable
Issuer: Santander Central Hispano International Ltd
..Upgrades:
....Backed Commercial Paper, upgraded
to P-1 from P-2
....Backed Senior Unsecured Medium-Term
Note Program, upgraded to (P)A2 from (P)A3
....Backed Other Short Term, upgraded
to (P)P-1 from (P)P-2
No outlook assigned
Issuer: Santander Int'l Debt, S.A. Unipersonal
..Upgrades:
....Senior Unsecured Regular Bond/Debenture,
upgraded to A2 Stable from A3 Stable
..Outlook Action:
....Outlook remains Stable
Issuer: Santander US Debt, S.A. Unipersonal
..Upgrade:
....Senior Unsecured Regular Bond/Debenture,
upgraded to A2 Stable from A3 Stable
..Outlook Action:
....Outlook remains Stable
Issuer: Banco Bilbao Vizcaya Argentaria, S.A.
..Upgrade:
....Long-term Counterparty Risk Assessment,
upgraded to A3(cr) from Baa1(cr)
..Affirmations:
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
....Long-term Issuer Rating,
affirmed Baa1, outlook changed to Positive from Stable
....Long-term Bank Deposits,
affirmed A3, outlook changed to Positive from Stable
....Short-term Bank Deposits,
affirmed P-2
....Senior Unsecured Regular Bond/Debenture,
affirmed Baa1, outlook changed to Positive from Stable
....Senior Unsecured Medium-Term Note
Program, affirmed (P)Baa1
....Senior Unsecured Shelf, affirmed
(P)Baa1
....Other Short Term, affirmed (P)P-2
....Commercial Paper, affirmed P-2
..Outlook Action:
....Outlook changed to Positive from Stable
Issuer: Banco Bilbao Vizcaya Argentaria, SA London Br
..Upgrade:
....Long-term Counterparty Risk Assessment,
upgraded to A3(cr) from Baa1(cr)
..Affirmation:
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
....Long-term Bank Deposits,
affirmed A3, outlook changed to Positive from Stable
....Short-term Bank Deposits,
affirmed P-2
....Commercial Paper, affirmed P-2
..Outlook Action:
....Outlook changed to Positive from Stable
Issuer: Banco Bilbao Vizcaya Argentaria, SA Paris Br
..Upgrade:
....Long-term Counterparty Risk Assessment,
upgraded to A3(cr) from Baa1(cr)
..Affirmations:
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
....Long-term Bank Deposit, affirmed
A3, outlook changed to Positive from Stable
....Short-term Bank Deposit,
affirmed P-2
....Commercial Paper, affirmed P-2
..Outlook Action:
....Outlook changed to Positive from Stable
Issuer: Banco Bilbao Vizcaya Argentaria,SA, New York
..Upgrade:
....Long-term Counterparty Risk Assessment,
upgraded to A3(cr) from Baa1(cr)
..Affirmations:
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
....Long-term Bank Deposits,
affirmed A3, outlook changed to Positive from Stable
....Short-term Bank Deposits,
affirmed P-2
..Outlook Action:
....Outlook changed to Positive from Stable
Issuer: BBVA Global Markets B.V.
..Affirmations:
....Backed Other Short Term, affirmed
(P)P-2
....Backed Senior Unsecured Medium-Term
Note Program, affirmed (P)Baa1
....Backed Senior Unsecured Regular Bond/Debenture,
affirmed Baa1, outlook changed to Positive from Stable
..Outlook Action:
....Outlook changed to Positive from Stable
Issuer: Catalunya Banc SA (Debts assumed by Banco Bilbao Vizcaya
Argentaria, S.A.)
..Affirmations:
....Senior Unsecured Regular Bond/Debenture,
affirmed Baa1, outlook changed to Positive from Stable
..No Outlook assigned
Issuer: Banco Popular Espanol, S.A.
..Upgrades:
....Long-term Counterparty Risk Assessment,
upgraded to Baa2(cr) from Baa3(cr)
....Short-term Counterparty Risk Assessment,
upgraded to P-2(cr) from P-3(cr)
....Long-term Bank Deposits,
upgraded to Baa2 Positive from Baa3 Positive
....Short-term Bank Deposits,
upgraded to P-2 from P-3
....Senior Unsecured Medium-Term Note
Program, upgraded to (P)Baa2 from (P)Baa3
....Other Short Term, upgraded to (P)P-2
from (P)P-3
..Outlook Action:
....Outlook remains Positive
Issuer: BPE Finance International Limited
..Upgrade:
....Backed Senior Unsecured Regular Bond/Debenture,
upgraded to Baa2 Positive from Baa3 Positive
..Outlook Action:
....Outlook remains Positive
Issuer: BPE Financiaciones, S.A.
..Upgrades:
....Backed Senior Unsecured Medium-Term
Note Program, upgraded to (P)Baa2 from (P)Baa3
....Backed Senior Unsecured Regular Bond/Debenture,
upgraded to Baa2 Positive from Baa3 Positive
..Outlook Action:
....Outlook remains Positive
Issuer: Santander Consumer Finance S.A.
..Upgrades:
....Long-term Bank Deposit, upgraded
to A2 Stable from A3 Stable
....Short-Term Bank Deposit,
upgraded to P-1 from P-2
....Senior Unsecured Regular Bond/Debenture,
upgraded to A2 Stable from A3 Stable
....Senior Unsecured Medium-Term Note
Program, upgraded to (P)A2 from (P)A3
....Commercial Paper, upgraded to A2
from A3
....Commercial Paper, upgraded to P-1
from P-2
..Affirmations:
....Long-term Counterparty Risk Assessment,
affirmed A3(cr)
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
..Outlook Actions:
....Outlook, Remains Stable
Issuer: Santander Consumer Bank S.p.A.
..Upgrades:
....Backed Senior Unsecured Regular Bond/Debenture,
upgraded to A2 Stable from A3 Stable
..Outlook Action:
....Outlook remains Stable
Issuer: CaixaBank, S.A.
..Upgrades:
....Long-term Bank Deposits,
upgraded to Baa1 Stable from Baa2 Positive
..Affirmations:
....Short-term Bank Deposits,
affirmed P-2
....Long-term Issuer Rating,
affirmed Baa2, outlook changed to Positive from Stable
....Senior Unsecured Regular Bond/Debenture,
affirmed Baa2, outlook changed to Positive from Stable
....Senior Unsecured Medium-Term Note
Program, affirmed (P)Baa2
....Other Short Term, affirmed (P)P-2
..Outlook Action:
....Outlook changed to Stable(m) from Positive(m)
Issuer: Banco Sabadell, S.A.
..Upgrade:
....Long-term Counterparty Risk Assessment,
upgraded to Baa1(cr) from Baa2(cr)
..Affirmations:
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
....Long-term Bank Deposits,
affirmed Baa2, outlook changed to Positive from Stable
....Short-term Bank Deposits,
affirmed P-2
..Outlook Action:
....Outlook changed to Positive from Stable(m)
Issuer: Banco Sabadell S.A., London Branch
..Upgrade:
....Long-term Counterparty Risk Assessment,
upgraded to Baa1(cr) from Baa2(cr)
..Affirmations:
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
....Long-term Bank Deposit, affirmed
Baa2, outlook changed to Positive from Stable
....Short-term Bank Deposits,
affirmed P-2
..Outlook Action:
....Outlook changed to Positive from Stable
Issuer: Bankinter, S.A.
..Upgrade:
....Long-term Counterparty Risk Assessment,
upgraded to A3(cr) from Baa1(cr)
..Affirmation:
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
No outlook action
Issuer: Banca March S.A.
..Upgrade:
....Long-term Counterparty Risk Assessment,
upgraded to A3(cr) from Baa1(cr)
..Affirmation:
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
No outlook action
Issuer: Kutxabank, S.A.
..Upgrade:
....Long-term Counterparty Risk Assessment,
upgraded to A3(cr) from Baa1(cr)
..Affirmation:
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
No outlook action
Issuer: Instituto de Credito Oficial
..Upgrades:
....Backed Commercial Paper, upgraded
to Baa1 from Baa2
....Backed Senior Unsecured Medium-Term
Note Program, upgraded to (P)Baa1 from (P)Baa2
....Backed Senior Unsecured Regular Bond/Debenture,
upgraded to Baa1 Stable from Baa2 Stable
..Affirmations:
....Backed Commercial Paper, affirmed
P-2
....Backed Other Short Term, affirmed
(P)P-2
..Outlook Action:
....Outlook remains Stable
Issuer: Caja Rural de Navarra
..Upgrades:
....Adjusted Baseline Credit Assessment,
upgraded to baa1 from baa2
....Baseline Credit Assessment, upgraded
to baa1 from baa2
....Long-term Counterparty Risk Assessment,
upgraded to A3(cr) from Baa1(cr)
....Long-term Bank Deposits,
upgraded to Baa1 Stable from Baa2 Stable
..Affirmations:
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
....Short-term Bank Deposit,
affirmed P-2
..Outlook Action:
....Outlook remains Stable
Issuer: Bankia, S.A.
..Upgrades:
....Long-term Counterparty Risk Assessment,
upgraded to Baa1(cr) from Baa2(cr)
....Long-term Bank Deposits,
upgraded to Baa2 Stable from Baa3 Developing
....Short-term Bank Deposits,
upgraded to P-2 from P-3
....Senior Unsecured Regular Bond/Debenture,
upgraded to Baa3 Stable from Ba1 Developing
....Senior Unsecured Medium-Term Note
Program, upgraded to (P)Baa3 from (P)Ba1
....Commercial Paper, upgraded to P-3
from NP
..Affirmations:
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
....Junior Senior Unsecured Medium-Term
Note Program, affirmed (P)Ba3
....Preferred Stock Non-cumulative,
affirmed B2(hyb)
....Adjusted Baseline Credit Assessment,
affirmed ba2
....Baseline Credit Assessment, affirmed
ba2
..Outlook Action:
....Outlook changed to Stable from Developing
PRINCIPAL METHODOLOGIES
The principal methodology used in rating Bankia, S.A.,
Caja Rural de Navarra, Banco Santander S.A. (Spain),
Banco Santander, S.A., London Branch,
Emisora Santander Espana S.A.U, Santander Central
Hispano International Ltd, Santander Int'l Debt, S.A.
Unipersonal, Santander International Products PLC, Santander
US Debt, S.A. Unipersonal, CaixaBank,
S.A., Santander Consumer Bank S.p.A.,
Santander Consumer Finance S.A., Banco Sabadell S.A.,
London Branch, Banco Sabadell, S.A., BPE
Finance International Limited, BPE Financiaciones, S.A.,
Banco Popular Espanol, S.A., Banca March S.A.,
Banco Bilbao Vizcaya Argentaria, S.A., Banco
Bilbao Vizcaya Argentaria, SA London Br, Banco Bilbao Vizcaya
Argentaria, SA Paris Br, Banco Bilbao Vizcaya Argentaria,SA,
New York, BBVA Global Markets B.V., Catalunya
Banc SA, Bankinter, S.A. and Kutxabank,
S.A. was Banks published in September 2017. The principal
methodology used in rating Instituto de Credito Oficial was Government-Related
Issuers published in August 2017. Please see the Rating Methodologies
page on www.moodys.com for a copy of these methodologies.
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides certain regulatory disclosures in relation
to the credit rating action on the support provider and in relation to
each particular credit rating action for securities that derive their
credit ratings from the support provider's credit rating.
For provisional ratings, this announcement provides certain regulatory
disclosures in relation to the provisional rating assigned, and
in relation to a definitive rating that may be assigned subsequent to
the final issuance of the debt, in each case where the transaction
structure and terms have not changed prior to the assignment of the definitive
rating in a manner that would have affected the rating. For further
information please see the ratings tab on the issuer/entity page for the
respective issuer on www.moodys.com.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this credit rating action,
and whose ratings may change as a result of this credit rating action,
the associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
Items color coded in purple in this Press Release relate to unsolicited
ratings for a rated entity which is non-participating.
The below contact information is provided for information purposes only.
Please see the ratings tab of the issuer page at www.moodys.com,
for each of the ratings covered, Moody's disclosures on the
lead rating analyst and the Moody's legal entity that has issued
the ratings.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
Maria Cabanyes
Senior Vice President
Financial Institutions Group
Moody's Investors Service Espana, S.A.
Calle Principe de Vergara, 131, 6 Planta
Madrid 28002
Spain
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454
Carola Schuler
MD - Banking
Financial Institutions Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454
Releasing Office:
Moody's Investors Service Espana, S.A.
Calle Principe de Vergara, 131, 6 Planta
Madrid 28002
Spain
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454
