Spain

Moody’s put all ratings of Bilbao Bizkaia Kutxa on review for downgrade today (Wednesday) because of its proposed acquisition of Cajasur, which was taken over by Spain’s Fund for Orderly Bank Restructuring (FROB) in May.

Banco Bilbao Vizcaya Argentaria yesterday (Monday) received Eu3.1bn of orders for a covered bond that was marketed at a level designed to ensure “certainty of execution”, according to bankers at the leads.

Banco Bilbao Vizcaya Argentaria this (Monday) morning launched the first sizeable new cédulas issue in three months on the back of improved market sentiment for Spanish debt.

Fitch yesterday (Wednesday) cut mortgage-backed covered bonds issued by Banco Popular Español from AAA to AA+ following a downgrade of the issuer.

Fitch yesterday (Tuesday) downgraded the long term rating of Banco Popular Español from AA- to A, on stable outlook, because of deterioration in the bank’s asset quality and its effect on operating profitability.

Standard & Poor’s on Friday placed Banco de Sabadell’s A rating on CreditWatch negative on news that the Spanish bank is in merger talks with Banco Guipuzcoano. It also kept Caja Madrid’s A rating on CreditWatch negative on the addition of Bancaja to its group of potential merger partners.

Standard & Poor’s has affirmed at AAA mortgage covered bonds issued by Eurohypo and Barclays’ Spanish arm under its new rating criteria, and assigned the ratings a stable outlook.

Caja Madrid yesterday (Wednesday) became only the second issuer to have its covered bonds upgraded by Standard & Poor’s upon implementation of the rating agency’s new methodology. This means that all cédulas, either single or multi-issuer, rated by S&P are now AAA.

Fitch downgraded three Spanish financial institutions yesterday (Tuesday) afternoon, while Standard & Poor’s put Caja Madrid on CreditWatch negative.

Fitch downgraded Banco de Sabadell’s rating from A+ to A, with a stable outlook, today (Tuesday) because of a deterioration in the bank’s asset quality and Spain’s weak economic environment.

Moody’s and Fitch yesterday (Wednesday) said that the takeover of CajaSur by the Spanish authorities has not affected the ratings of either covered bonds issued directly by the savings bank or those it participates in.