S&P has upgraded BBVA’s long-term debt rating to A- from BBB+, a level the institution had not achieved since early 2012. The agency underscored the strength of BBVA’s franchises in the countries in which it operates, aiming at strengthening profitability while pushing for digitalization.
Rating agency S&P upgraded BBVA’s long-term debt rating by a notch to A- from BBB+. The outlook is stable. This upgrade also improves by a notch the rating of the debt instruments that S&P rates.
BBVA thus reaches S&P’s category A for the first time since early 2012. With this upgrade, the BBVA Group is now rated with the A category by four of the five major rating agencies.
This action follows the upgrade on the Spanish sovereign rating (to A- from BBB+) announced on March 23, which led to an improvement of Spain’s financial risk, which, in turn, resulted in an upgrade of the rating of some Spanish banks, including BBVA.
In its press release, S&P makes reference to BBVA’s strength. Specifically:
- The agency expects BBVA to continue underpinning its franchises’ strength, aiming at strengthening profitability while pushing for digitalization.
- It also expects profitability to increase, with a higher contribution from Spain to the Group’s profits, thanks to lower costs.
- S&P expects the quality of BBVA Group’s assets to continue improving and, especially, in the indicators in Spain.
With this upgrade, BBVA’s rating is on par with the average S&P rating of its European peer group.
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