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Moody's upgrades CaixaBank's ratings

Moody's on May 17 upgraded Spain-based CaixaBank SA's long-term bank deposits rating to A3 from Baa1, and junior senior unsecured debt rating to Baa3 from Ba1.

The agency also assigned the bank a Baa1 long-term foreign-currency issuer rating, with a stable outlook.

The outlook on the long-term bank deposit and local currency issuer ratings, as well as the senior unsecured debt ratings remains stable.

Additionally, the ratings agency affirmed the bank's A3/P-2 long- and short-term counterparty risk ratings, A3(cr)/P-2(cr) long- and short-term counterparty risk assessments, and Baa1 long-term local currency issuer rating.

Also affirmed were the company's P-2 short-term bank deposits rating, and "baa3" baseline and adjusted baseline credit assessment.

The stable outlook reflects the agency's view that the lender will continue to be in a position to gradually improve its credit profile by reducing its problematic assets further and improving its core profitability.

The upgrades were prompted by a reduction in loss severity for senior unsecured and junior senior creditors, as well as junior depositors on the back of Moody's expectation that CaixaBank will issue additional loss-absorbing capital due to regulatory requirements.

Additionally, the affirmation of the bank's baseline and adjusted baseline credit assessments reflects Moody's view that the lender will continue to see sustained recovery in its core revenues and capital.