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jun

Moody´s has downgraded 25 Spanish Financial Institutions

Escrito el 15 junio 2009 por Antonio Rivela Rodríguez en Uncategorized

 

 

Oops they did it again….

As I forecasted couple of months ago, Moody’s has done it!

Click to see our prior blog forecasting the rating downgrade snowball

 

They have finally downgraded the credit quality (rating) of no less than 25 financial institutions in Spain.

This is not unexpected for us and reflects a weaker financial environment than many could have dreamed in their worst nightmares.

Fortunately Santander, BBVA, CECA and Banesto remained in credit watch, which means that they will be monitored in the short term but no action will be taken if they improve their financial strength.

Let me clarify ratings for men in the street. First of all its important to realise that ratings are related to senior debt (equivalent to bank deposits and long term high quality bonds).

AAA: Highest rating

Aa: High Quality

A: Better than the average rating.

Baa: Average rating.

Ba: Speculative features.

B: Lack of investment quality.

Caa: Default Risk.

Ca: Very speculative.

C: Lowest rating.

 

 

 

And….the winners are:

 

BBVA: Aa1

Banco Santander: Aa1

Banco de Crédito Local: Aa1

Banesto: Aa2

CECA: Aa2

La Caixa: Aa1 downgraded to Aa2

Unicaja: Aa3

Banco Popular: Aa2 downgraded to Aa3

BBK: A1

Banco Cooperativo Español: A1

Caja Madrid: Aa3 downgraded to A1

Bankinter: Aa3 downgraded to A1

Caja Rural de Navarra: A2

Lico Leasing: A2

Banca March: A2

Bancaja: A2

Ibercaja: A1 downgraded to A2

Caja Vital: A1 downgraded to A2

Banco Sabadell: Aa3 downgraded to A2

Caja Rural de Granada: A3

Caja Cantabria: A3

Caja Laboral: A1 downgraded to A3

Caixanova: A1 downgraded to A3

Caixa Catalunya: A2 downgraded to A3

Caixa Galicia: A2 downgraded to A3

Caja Rioja: A2 downgraded to A3

Caja Duero: A2 downgraded to A3

Cajamar: A2 downgraded to A3

Banco Pastor: A2 downgraded to A3

Banco Guipuzcoano: Baa1

Caixa D’Estalvis de Tarragona: Baa1

Caja de Burgos: A3 downgraded to Baa1

Caja España: A3 downgraded to Baa1

Caja de Canarias: A3 downgraded to Baa1

Caixa D’Estalvis de Manresa: A2 downgraded to Baa1

Banco de Valencia: A3 downgraded to Baa1

CAM: A2 downgraded to Baa1

Caixa D’Estalvis de Terrasa: A3 downgraded to Baa2

Caja de Ávila: Baa1 downgraded to Baa3

Caja Segovia: Baa1 downgraded to Baa3

 

Between you and me, I am still a big fan of Spanish saving banks because I have the feeling that they would be merged if a turbulence happens in any way, shape or form.

Anyway small private banks like Guipuzcoano are not my cup of tea anymore. Too risky and local.

I hope you found it useful. Take care and see you in our next financial blog!

 

 

Comentarios

styczen 5 enero 2014 - 14:08

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