Research Update: Spain-Based Banco Popular Espanol Long-Term Rating Lowered To 'BBB+' On Bank Criteria Change; Still On Watch Negative Dec 11
- Language: English
- Published: December 2011
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
Strong, above-average profitability track record Sound asset quality throughout a complete economic cycle Coherent, focused, and sound strategy High exposure to real estate developers More limited degree of business and geographic diversification than other 'AA' rated European banks The ratings on Banco Popular Espa-ol, S.A. (Popular), the highest assigned to a private bank in Spain, reflect its strong financial fundamentals--in particular its solid earnings record and asset quality--and management's coherent, focused, and sound strategy, which offset its more limited business and geographic diversification than similarly rated peers. The bank's high exposure to the real estate developer segment represents the main downside risk for the ratings. Popular's strong profitability track record remains one of its major financial strengths, although the considerable...
Companies mentioned in this report are: Banco Popular Espanol, S.A.