Fitch Ratings on March 19 upgraded Abanca Corporación Bancaria SA's long- and short-term issuer default ratings to BBB-/F3 from BB+/B and its viability rating to "bbb-" from "bb+."
The outlook on the long-term rating is stable.
The upgrades reflect significant improvements in the Spanish lender's asset quality, driven by its continued organic reduction of nonperforming loans and foreclosed assets as well as its reduced capital at risk from unreserved problem assets, which is now at a similar level with that of its investment-grade peers. It also reflects the lender's robust capital position, stable funding and liquidity profile and improved franchise in its home region, among other factors.
In addition, Fitch affirmed Abanca's support rating at 5 and its support rating floor at No Floor.