S&P Global Ratings on May 31 took certain ratings actions on several Spanish banks.
S&P upgraded the long-term issuer credit rating of Cecabank SA to BBB+ from BBB and the long- and short-term issuer credit ratings of Caja Laboral Popular Cooperativa de Crédito to BBB/A-2 from BBB-/A-3. The outlook on the two lender's long-term ratings were revised to stable from positive.
At the same time, the agency affirmed Banco Santander SA's A/A-1 long- and short-term issuer credit ratings. The same ratings of Banco Bilbao Vizcaya Argentaria SA, its unit BBVA Global Markets BV and Santander Consumer Finance SA were affirmed at A-/A-2.
S&P affirmed the BBB+/A-2 long- and short-term issuer credit ratings of CaixaBank SA and Bankinter SA. The long- and short-term issuer credit ratings of Kutxabank SA, Bankia SA and Banco de Sabadell SA were affirmed at BBB/A-2.
The rating agency also affirmed the long- and short-term issuer credit ratings of BFA Sociedad Tenedora de Acciones SAU at BBB-/A-3 and of Abanca Corporación Bancaria SA and Ibercaja Banco SA at BB+/B.
The outlook on all the banks is stable, except for Kutxabank, which carries a positive outlook. The outlook on BBVA and BBVA Global Markets is negative.
S&P noted that the Spanish lenders have accelerated the reduction of problematic assets, mainly of real estate, through sizable disposals. The agency expects this trend to continue with the local banking system's stock of nonperforming assets falling to 4.5% of loans by 2021.
Additionally, S&P said macroeconomic conditions in Spain continue to support recovery in the profitability of the nonfinancial corporate sector and massive deleveraging since the crisis has reduced corporate indebtedness to levels in line with European peers. The agency also expects sound economic growth and positive labor dynamics to continue, while revising its assessment of economic risks in the country to 4 from 5.
The outlook on Spanish banks is largely stable, reflecting that the repositioning of ratings after the crisis compared to their gradual balance sheet strengthening has been completed.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.