Ratings

Several actions were taken on the ratings in Europe in October. In Spain, Fitch downgraded the sovereign (Kingdom of Spain) by two notches, from AA to AA– with a negative outlook, which resulted in actions for the Spanish banking system. BBVA’s rating decreased to A+ from AA–. Likewise, Standard & Poor’s universally downgraded its ratings for the Spanish banking system. BBVA’s rating fell to AA– from AA, with a negative outlook. The sovereign rating was also downgraded to the same level as that of BBVA. In line with the other two rating agencies, Moody’s completed in October its Spanish sovereign rating revision, which implied a two notch downgrade to A1 (negative outlook). This action has also had a direct impact on Spanish banks’ ratings. BBVA’s rating was downgraded one notch to Aa3 (negative outlook). This rating is one notch ahead of the sovereign one.