Moody’s has raised the rating of six Spanish financial entities and has highlighted the solidity of the sector with improved outlook after having improved its outlook for Spain this weekend. Thus, CaixaBank’s base credit assessment (BCA) improves (from baa3 to baa2); Banco Sabadell (from ba1 to baa3); Bankinter (from baa2 to baa1); Unicaja (from ba2 to ba1); Ibercaja (from baa3 to baa2) and Cecabank (from ba1 to baa3).
The rating agency’s analysts have also revised the outlook as issuers of Banco Santander, BBVA, Banco Sabadell, KutxaBank, Banca March, the Spanish Association of Rural Banks (AECR) and the Institute of Official Credit (ICO).
The reason for this reinforcement
CaixaBank’s improvement responds to the improvement in its credit profile and the expectation that, thanks to its leading bancassurance franchise, it maintains a solid position in the current interest rate environment, underlines the agency, which also raises its rating. long-term debt issuer (from Baa1 to A3) and senior preferred debt (from Baa1 to A3), among other metrics, according to EFE.
Banco Sabadell’s new rating responds to the improvement in the bank’s solvency and asset quality indicators, after a significant risk reduction in recent years, and the gradual strengthening of its profitability.
Moody’s also highlights Bankinter’s level of solvency and its solid risk profile, mainly in terms of asset quality and profitability, which has led it to increase the entity’s long-term deposit ratings (from A3 to A2).
Regarding Unicaja, the agency highlights that it has significantly improved its asset risk metrics from weak levels, after a significant drop in its ‘stock’ of doubtful assets in 2023. The entity also improves its long-term deposit ratings, from Baa3 a Baa2.
The advance in Ibercaja Banco’s grade responds to its improved solvency, its asset quality indicators and a solid financing profile, supported by a broad and stable customer deposit base. It also advances its long-term deposits rating (from Baa2 to Baa1).
The more favorable operating conditions for Spanish banking have strengthened Cecabank’s business model as a provider of wholesale financial services, mainly to national financial entities, highlights Moody’s. It also improves its long-term deposit rating (from Baa2 to Baa1).
The agency has also affirmed Banco Santander’s base credit assessment (baa1), which reflects the strength of its business model with leading positions in several main markets, both in mature and emerging economies with different credit cycles.
Moody’s also affirms BBVA’s baa2 rating, supported by a geographical diversification model and its business “mix”, highly oriented towards retail and commercial banking, which translates into sustained generation of profits and low volatility throughout the cycle. .
