Moody’s acts on 10 Spanish banks

Moody's Investors Service said it took actions on 10 Spanish banking groups, prompted by the change of the banking macro profile of Spain (Baa2 stable) to "strong-" from "moderate+," as well as the continued improvement in the banks' credit fundamentals, notably asset risk.

The agency took the following actions:

• CaixaBank, SA: Long-term deposit ratings affirmed at Baa2 with a positive outlook and long-term senior debt ratings affirmed at Baa2 with a stable outlook; baseline credit assessment (BCA) and adjusted BCA affirmed at ba1;

• Banco Sabadell, SA: Long-term deposit ratings affirmed at Baa2 with a stable outlook and long-term senior debt ratings affirmed at Baa3 with a positive outlook; BCA and adjusted BCA affirmed at ba2;

• Bankia SA: Long-term deposit ratings upgraded to Baa3 from Ba2 and long-term senior debt ratings to Ba1 from Ba3, both with a stable outlook; BCA and adjusted BCA upgraded to ba2 from b1;

• Unicaja Banco SA: Long-term deposit ratings affirmed at Ba3 with a positive outlook; BCA and adjusted BCA affirmed at b1;

• Ibercaja Banco SA: Long-term deposit ratings upgraded to Ba3 from B1 with a stable outlook; BCA and adjusted BCA upgraded to ba3 from b1;

• Kutxabank, SA: Long-term deposit ratings upgraded to Baa3 from Ba1 with a positive outlook and senior debt program to provisional Baa3 from provisional Ba1; BCA and adjusted BCA upgraded to baa3 from ba1;

• Abanca Corporacion Bancaria, SA: Long-term deposit ratings upgraded to Ba3 from B2 with a stable outlook; BCA and adjusted BCA upgraded to ba3 from b2;

• Banco Cooperativo Espanol, SA: Long-term deposit ratings upgraded to Baa3 from Ba1 with a stable outlook; BCA upgraded to ba1 from ba2 and adjusted BCA to baa3 from ba1;

• Banca March SA: Long-term deposit ratings upgraded to A3 from Baa1 with a stable outlook; BCA and adjusted BCA upgraded to baa2 from baa3; and

• Caja Rural de Navarra: Long-term deposit ratings affirmed at Baa2 with a stable outlook; BCA and adjusted BCA affirmed at baa2 (BCA constrained at the level of the Spanish sovereign rating - Baa2 stable).

"The main driver for the rating actions is the banking system's improved credit conditions following the deleveraging of the private sector. This positive development has been reflected in an improvement in Moody's Macro Profile for Spain," Moody’s senior vice president Maria Cabanyes said in a news release.

"The rating actions also incorporate Moody's expectation of a sustained improvement in the banks' asset risk metrics against a backdrop of solid economic growth in Spain and the progressive recovery of the country's real estate market."

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