Fitch affirms CaixaBank

Fitch Ratings said it affirmed CaixaBank SA's long-term issuer default rating at BBB and viability rating at bbb.

The outlook is positive.

The agency said the action follows CaixaBank's agreement to spin off the real estate business, including a large portfolio of real estate assets and the servicer, into a new legal entity and sell 80% of it to Lone Star, a private equity fund.

Fitch said the ratings reflect a view that the agreement to sell the foreclosed assets portfolio will be positive for CaixaBank's credit risk profile and will reduce capital encumbrance by unreserved problem assets.

However, its overall risk profile is still affected by the relatively high market risk exposure stemming from its material equity investments, the agency said.

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