DBRS upgraded Caixa Geral de Depósitos SA's long- and short-term issuer ratings to BBB/R-2(high) from BBB(low)/R-2(middle), and changed the trends to stable from positive on the ratings.

The agency also upgraded the Portuguese bank's long-term senior debt rating to BBB, short-term debt rating to R-2(high), and long-term critical obligations rating to A(low), and confirmed its BBB/R-2(high) long- and short-term deposit ratings and R-1(low) short-term critical obligations rating. The trends on the deposit ratings are positive, while the trends on the other ratings are stable.

The bank's intrinsic assessment was raised to BBB, while its support assessment remains unchanged at SA3.

The upgrades reflect improvements in the bank's profitability, solid funding and capital position. They also take into account a reduction in the company's nonperforming loans, in line with its restructuring plans for the 2017 to 2020 period, including a reduction in headcount and branches, as well as the downsizing of its operations outside Portugal.

Moreover, the bank's long- and short-term deposit ratings are currently rated at the same level as Portugal's BBB/R-2(high) long- and short-term deposit ratings, with further positive ratings action on the bank's ratings requiring an upgrade of the sovereign rating.

Additionally, the agency upgraded Caixa Geral de Depósitos' French branch's long-term senior debt rating to BBB and short-term debt rating to R-2(high), and confirmed its BBB/R-2(high) long- and short-term deposit ratings. The trends on the deposit ratings are positive, while the trends on the other ratings are stable.