S&P upgrades Abanca

S&P said it raised Abanca Corporacion’s ratings to BBB- from BB+.

“The upgrade reflects our view that Abanca's earnings capacity has improved, reducing the gap with that of higher-rated peers. Abanca has gradually improved the quality of its revenues toward recurrent sources, reducing the weight of extraordinary gains. Recurrent profits represented about 70% of net income in 2021, compared with about 20% in 2017. Its strategy to expand its asset management and insurance business, coupled with acquisitions of small players focused on these businesses, have contributed to strengthening net interest income and fees,” S&P said in a press release.

The outlook is stable.

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