Moody’s upgrade to A3, with a stable outlook, comes a week after BBVA announced its MREL requirement and its financing plan for the coming years.
Moody’s expects that “BBVA will complete its medium-term issuance plan -which entails the refinancing of its covered bond and senior debt redemptions amounting to approximately €9 billion as of January 1, 2018”, with new MREL eligible debt instruments, such as non-preferred senior debt. In a statement, Moody’s notes that the issuance plan will reduce the risk for other type of bank debt, such as senior unsecured debt and long-term depositors.
Since 2013, leading ratings agencies have upgraded BBVA’s rating, now in A category with all of them.
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