Moody's concludes reviews on 20 Spanish banks' ratings Moody's Investors Service has today concluded its reviews on the ratings of 20 banks in Spain.
In light of the new banking methodology, Moody's rating actions generally reflect the following considerations (1) the "Moderate +" macro profile of Spain (Baa2 positive); (2) the improved outlook for banks' core financial fundamentals based on the strengthening operating environment; (3) the protections offered to depositors and senior creditors as assessed by Moody's Advanced Loss Given Failure (LGF) analysis, reflecting the benefit of instrument volume and subordination protecting creditors from losses in the event of resolution; and (4) Moody's view of a decline in the likelihood of government support for all Spanish banks.
Among the rating actions that Moody's has taken on the Spanish banks are the following:
- 12 long-term bank deposit ratings upgraded, one affirmed, five confirmed and two downgraded
- Five short-term bank deposit ratings upgraded, 12 affirmed and three confirmed
- Eight bank senior unsecured debt ratings upgraded, two confirmed and two downgraded
- Two short-term bank senior unsecured debt ratings upgraded and seven affirmed
- Six baseline credit assessments (BCAs) upgraded, 13 affirmed and one confirmed