Research Update: Spain-Based Banco Popular Downgraded To 'BBB-/A-3' After Sovereign Downgrade; Ratings Remain On CreditWatch Negative Feb 12
- Language: English
- Published: February 2012
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
The ratings on Banco Popular Espa-ol S.A. (Popular), the highest assigned to a private bank in Spain, reflect the bank's strong financial fundamentals--in particular its excellent earnings record, sound asset quality, and good (albeit declining) capitalization. They also reflect management's coherent and conservative strategy. Popular's strong and resilient profitability is indisputably one of the bank's major financial strengths and a source of great financial flexibility. The bank's ability to maintain average returns at a high 1.6% of average assets over the past three years is quite an achievement, considering the challenge of operating in a historically low interest rate environment and the need to comply with more stringent mandatory credit provisions. Popular's outstanding performance--a combination of the bank's focus on...
Companies mentioned in this report are: Banco Popular Espanol, S.A.
Banco Popular Espanol, S.A.