Fitch international rating agency has upgraded Kutxabank's long-term rating to BBB +. The Agency has also upgraded the viability rating from bbb to bbb+ and the short-term rating from F3 to F2. Fitch highlights the great loss-absorbing capacity, the improvement in asset quality indicators and the good liquidity position maintained by the banking group. Likewise, it values favourably the reduction of its position in the equity portfolio that it considers currently more appropriate to its level of capital.
S&P revised its outlook on Kutxabank’s covered bond program and related issuances ("cédulas hipotecarias") to positive from stable, following their March 31, 2017 outlook revision on Spain.
Moody's Investors Service has today affirmed Kutxabank, S.A.'s long-term deposit and senior debt ratings at Ba1 and changed the outlook on these ratings to positive from stable reflecting the positive pressure that could develop on Kutxabank's ratings if the improving trend observed on the bank's credit fundamentals -- namely asset risk and capital -- continues over the next 12-18 months.
S&P Revised to positive the outlook on the long-term rating on Kutxabank S.A affirming its long- and short-term rating. This rating actions take into account that Spanish banks now face lower economic risks. S&P considers that the Spanish banking sector has largely absorbed the credit costs of the bursting of the real estate bubble and the deep economic recession that followed. As a result, the rating agency expects any remaining provisioning impact from the correction of previous imbalances to be limited. The positive outlook on Kutxabank indicates the possibility of an upgrade over the next 12-24 months if Spain's economic and operating environment becomes more supportive, ultimately resulting in a strengthening of the bank's creditworthiness and therefore a higher anchor for Spanish banks.
Fitch has affirmed Kutxabank Long-term Issuer Default Rating at BBB, with Positive Outlook, and Viablility Rating at bbb, as well as affirmed the bank’s Short-term rating at F3, reflecting Kutxabank’s robust loss-absorption capacity, improving asset quality, adequate funding and liquidity position and its leading regional retail franchise coupled with a strong asset management business. The Positive Outlook reflects that there is some upside Viability Rating potential.
Moody’s upgrades Kutxabank’s long-term deposit and senior debt rating to Ba1 from Ba2. Additionally the rating agency has also upgraded Kutxabank’s baseline credit assessment (BCA) to ba1 and subordinated debt to Ba2. Counterparty Risk Assessment is upgraded to Baa2 from Baa3. This rating action reflects the improvement of Kutxabank’s credit fundamentals, particularly in terms of asset risk and capital. Kutxabank has improved sustainably its asset risk metrics. Moody’s has also taken into account for the upgrade Kutxabank’s improved capital buffers, which stand amongst the highest of Spanish banks, with the regulatory common equity tier 1 (CET1) ratio increasing to 14.6% at end-December 2015 (Fully-loaded CET1: 14.3%).
S&P upgrades Kutxabank's Cédulas Hiptecarias rating from A to A+, following the sovereign rating upgrade on the 2nd October. The rating is limited to 3 notches uplift above the sovereign (BBB+).
Moody's upgrades the rating of Kutxabank Cédulas Hipotecarias (Spanish Covered Bonds) to Aa2, following the assignment of Counterparty Risk (CR) Assessment.
Moody’s, in the framework of a general review of financial institutions ratings, in light of its new banking methodology, assigns a Ba2 to Kutxabank's Long-term senior debt, a Ba2 to its deposits and a Baa3 to its Counterparty Risk Assessment.
Moody´s announces multiple rating actions following the publication of its new bank rating methodology. This rating action affects 1,021 entities out of 1,934 all over the world, reflecting the expected lowered likelihood of government support for European banks in light of the introduction of the Bank Recovery and Resolution Directive (BRRD). Moody´s places Kutxabank´s Long Term senior unsecured rating and Deposits rating under review for downgrade (Ba1, RuR down).
Moody's says that the change in the outlook of the bank's standalone ratings stems primarily from the bank's improving risk-absorption capacity. The bank's transitional Common Equity Tier 1 (CET1) ratio stood at 12.9% in Q3 2014, whilst the leverage ratio reached 7.4%, the highest among Spanish banks. Moody's has also taken into account Kutxabank's demonstrated capacity to generate capital from internal resources throughout the Spanish banking crisis.
S&P lowers the rating on Kutxabank’s mortgage covered bonds from AA- to A after applying a new rating criteria (RAS, Ratings Above The Sovereign Criteria). By this criteria, S&P considers covered bonds backed by mortgage assets as having a “moderate” sensitivity to country risk, and consequently the covered bonds can be rated a maximum of 3 notches above the rating sovereign. Kutxabank’s mortgage covered bond rating benefits from the maximum uplift possible above the long-term rating on the issuer due to the overcollateralization of Kutxabank's cover pool as well as its “low” ALMM risk.
Fitch has affirmed Kutxabank’s Long-Term Issuer Default Rating at BBB. The Outlook on the Long-Term IDR has been revised to Positive from Negative. The Outlook revision reflects Fitch’s view that the Long-term IDR could be upgraded due to Kutxabank's sound capitalisation and adequate funding and profitability.
S&P has changed to stable from negative the outlook on the AA- mortgage covered bond rating of Kutxabank. Kutxabank mortgage covered bond rating benefits from the maximum uplift possible above the long-term rating on the issuer due to the overcollateralization of Kutxabank's cover pool as well as its “low” ALMM risk. Therefore, this outlook change reflects S&P's 4th June decision of raising the outlook of the entity.
S&P has changed to stable from negative the outlook on the BBB- rating of Kutxabank, and concurrently affirmed its rating. This outlook change reflects last May S&P's decision to raise Spanish sovereign rating. The American Agency highlights that maintains a positive view on the trend of economic risk for the Spanish banking system.
Moody’s has changed to negative from stable the outlook on the Ba1 long-term senior debt and deposit ratings of Kutxabank, and concurrently affirmed its rating. This outlook change reflects Moody’s view that following the recent adoption of the Bank Recovery and Resolution Directive (BRRD), the legislation underlying the new resolution framework and the explicit inclusion of burden-sharing with unsecured creditors as a means of reducing the public cost of bank resolutions, the protection for banks' senior unsecured creditors has shifted to the downside.
Moody’s has changed to stable from negative the outlook on the Ba1 long-term senior debt and deposit ratings of Kutxabank, and concurrently affirmed its rating. This outlook change reflects Moody’s view that the downside risks to the bank’s standalone rating have diminished. Throughout the Spanish banking crisis and taking into account also the acquisition of Cajasur, Kutxabank has demonstrated capacity to generate capital organically, despite the strong provisioning effort in recent years. The outlook change reflects the combination of this track record and resilience of Kutxabank’s credit profile and the stabilising economic backdrop.
Moody’s Investors Service has upgrade in one notch Kutxabank’s Covered Bond rating, to A2 from A3. This follows the upgrade of Spain’s country ceiling to A1 from A3, which was carried out by the upgrade of Spain’s government bond rating to Baa2 (positive outlook) from Baa3.
Moody’s affirms Kutxabank’s issuer rating of Ba1/NP with Negative Outlook. The rating Agency considers that the quality of the financial group’s assets, its non-perfoming-loan rate and income-generating capacities are better than the average of the Spanish banking system. It emphasises also its adequate risk absorption capacity. The Negative Outlook reflects the recession on the Spanish economy, the short term low global growth expectations, the real estate crisis, the high unemployment rate and the banking crisis.
Fitch confirms Kutxabank´s issuer rating of BBB/F3 with Negative Outlook. The rating reflects its leading franchise in the Basque Country, a region whose economy has performed better than most others in Spain. This operating environment supports the resilience of earnings and asset quality. The Agency also highlights its large and stable of Customer Deposits. On the other hand, the Negative Outlook reflects Spain's weak economic environment, including high unemployment and lack of growth.
S&P has confirmed kutxabank’s BBB-/ A-3 outlook negative rating, as part of a review of the Spanish financial sector, as a consequence of sovereign’s rating downgrade of the 16 of October. In a context of a higher economic risks faced by the Spanish banking industry, the Agency has revised down the starting point rating of the Spanish financial institutions to BB+ from BBB-. However, this minimum is higher for Kutxabank, reflecting its better balanced funding structure and the low reliance to the ECB funding, which provides a strong creditworthiness to deal with the effects of the current macroeconomic envinoment, so it maintains the rating at the same level as the sovereign.
S&P lowers the rating on Kutxabank’s mortgage covered bonds from AA to AA-, after the downgrade of the Sovereign rating of 11th of October. Kutxabank’s mortgage covered bond rating benefits from the maximum uplift possible above the long-term rating on the issuer (seven-notches) due to the overcollateralization of Kutxabank's cover pool as well as its “low” ALMM risk but, in line with S&P EMU criteria, Kutxabank’s mortgage covered bonds are currently capped six notches above the long-term rating on Spain. They have also placed the rating on CreditWatch negative to reflect that a further downgrade of Kutxabank’s rating by more than one notch will have a direct impact on the rating on the covered bonds, after the placement of Kutxabank’s rating on CreditWatch negative of 15th of October.
Moody’s lowers the rating on Kutxabank’s mortgage covered bonds, from Aa3 to A3. This rating downgrade follows the sovereign rating downgrade of 13 of June to Baa3 from A3, and consequently Moody’s lowered Spain’s country ceiling to A3.
S&P lowers the rating on Kutxabank’s mortgage covered bonds from AA+ to AA, after the downgrade of the issuer credit rating to BBB- from BBB which was a consequence of the sovereign rating downgrade of April. Kutxabank’s mortgage covered bond rating benefits from the maximum uplift possible above S&P’s long-term rating on the issuer (seven-notches) due to the overcollateralization of Kutxabank's as well as its “low” ALMM risk.
S&P assigns a rating of AA+ to Kutxabank’s mortgage covered bonds. The combination of the overcollateralization and a low ALMM classification enables the rating agency to assign the covered bonds the maximum rating uplift of seven notches above the long-term Kutxabank’s rating. The outlook is negative, reflecting that any further rating action on Kutxabank´s long term issuer credit rating would directly affect the rating assigned to the mortgage covered issued by the bank.