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 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 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 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.