THE TAKEAWAY: S&P takes ratings action on 15 Spanish banks > Move largely expected following Spain’s sovereign downgrade on Jan. 13 > EUR reaction muted
Standard & Poor’s downgraded 13 Spanish financial institutions on Monday and took ratings action on 2 others in a move largely anticipated after the agency cut Spain’s sovereign rating on January 13. The following institutions were affected, including the country’s largest lenders Santander and Banco Bilbao Vizcaya Argentaria (BBVA):
|
Bank |
Original |
Downgraded To |
Outlook |
|
Downgrade |
|||
|
Banco Santander |
AA- |
A+ |
Negative |
|
BBVA |
A+ |
A |
Negative |
|
CaixaBank |
A |
BBB+ |
Stable |
|
Caja de Ahorros y Pensiones de Barcelona |
BBB+ |
BBB- |
Stable |
|
Bankinter |
BBB+ |
BBB |
Negative |
|
Ibercaja Banco |
BBB+ |
BBB |
Negative |
|
Banco de Sabadell |
BBB |
BBB- |
Watch Negative |
|
Banco Popular Español |
BBB+ |
BBB- |
Watch Negative |
|
Banca Civica |
BBB |
BBB- |
Negative |
|
Bankia |
BBB+ |
BBB- |
Negative |
|
Banco Financiero y de Ahorros |
BB+ |
BB- |
Negative |
|
Bilbao Bizkaia Kutxa |
BBB+ |
BBB |
Negative |
|
Caja de Ahorros y Monte de Piedad de Gipuzkoa y San Sebastián |
BBB+ |
BBB |
Negative |
|
Outlook Change |
|||
|
Barclays Bank S.A. |
A (Stable to Negative) |
||
|
New Rating |
|||
|
Kutxabank |
BBB (Negative) |
||
The Euro’s reaction remained muted due to the widely-expected nature of S&P’s action.
Chart generated using Strategy Trader
Instead, the common currency continues to be supported by Greece’s passage of austerity measures on Sunday, and markets will continue to focus on developments related to the country’s second bailout package as Eurozone finance ministers meet on Wednesday.
