S&P lifts Instituto Valenciano de Finanzas

Standard & Poor’s said it raised the long-term issuer credit rating on Instituto Valenciano de Finanzas to BB from BB-.

The outlook is stable.

The company’s B short-term issuer credit rating was affirmed.

The upgrade follows a similar rating action on the region of Valencia, S&P said.

The ratings reflect the strength of Valencia’s explicit statutory guarantee, under which it considers the company’s liabilities as its own debt, the agency said.

Instituto Valenciano de Finanzas’s debt is covered by the liquidity support that Spain’s central government provides to Valencia through the regional liquidity facility, Fondo de Liquidez Autonomico, S&P said.

The company is considered to be a government-related entity and that there is an almost certain likelihood that Valencia will provide timely and sufficient support if needed, the agency said.

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