Fitch lifts Abanca from junk

Fitch Ratings said it upgraded Abanca Corporacion Bancaria, SA's long-term issuer default rating to BBB- from BB+ and viability rating to BBB- from BB+.

The outlook is stable.

The upgrades reflect Abanca's notable improvements in asset quality, as evidenced by continued organic reduction of problem assets in the last four years and reduced capital at risk from unreserved problem assets, Fitch said.

The ratings also consider the company's strengthened franchise in its home region, sound capital position and stable funding and liquidity profile, but also its only modest core operating profitability, the agency said.

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