DBRS downgraded Banco Popular Español SA and unit Banco Pastor to selective default from BB, under review with negative implications.

The downgrade came due to a resolution by the European Single Resolution Board and the Spanish Resolution Authority. It reflected the "bail-in of the capital instruments" following Banco Santander SA's acquisition of the company.

The rating agency also downgraded Banco Popular's dated subordinated notes and preferred shares to D from B (low).