S&P upgrades BBVA’s rating by one notch to A
Rating agency Standard & Poor’s (S&P) has raised BBVA’s rating to A from A-. The outlook is negative, mirroring the negative outlook of Spain's sovereign rating. S&P underscores BBVA’s strength and geographic diversification, the profitability of its retail banking franchise, its cautious risk management and the strength of its capital, among other factors.
![BBVA-Previa-I-Day-ciudad-bbva-Vela BBVA-Previa-I-Day-ciudad-bbva-Vela](https://www.bbva.com/wp-content/uploads/2021/11/BBVA-Previa-I-Day-1-150x150.jpg)
After recently updating its bank rating methodology, S&P has raised BBVA’s rating as it considers that the bank has issued a sizable enough cushion of bail-inable instruments in order to protect senior debtors in case of a hypothetical resolution scenario.
As a decisive factor in this rating action, the updated methodology acknowledges the strength of the Multiple Point of Entry (MPE) resolution strategy, applied by BBVA, with a decentralized management model for the franchises.
The rating agency has also forecasted greater profitability, and specifically, a return on equity (ROE) of up to nine to ten percent in the 2021-2023 period, mainly thanks to cost savings - especially in Spain.
In addition, S&P expects the bank’s asset quality to remain under control and capital to continue above the bank’s target level through 2023.
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Qualifications of the senior preferred debt of BBVA by some of the main rating agencies