Research Update: Spain-Based Barclays Bank S.A. Outlook Revised To Negative After Sovereign Downgrade; 'A/A-1' Ratings Affirmed Feb 12
- Language: English
- Published: February 2012
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The ratings on Spain-based Barclays Bank S.A. (BBSA) are underpinned by the bank's core status within U.K.-based Barclays Bank PLC (Barclays, AA-/Negative/A-1+), its increasing presence across Spain, and limited market risk. Negative rating factors include the rapid deterioration in the bank's commercial loans portfolio, low efficiency, high single-name concentration, and a weaker market position than for larger domestic players. Standard & Poor's Ratings Services considers BBSA to be a core subsidiary of Barclays. Barclays almost wholly owns BBSA, which shares the same brand name, systems, policies, and standards. We therefore equalize the ratings on BBSA with those on the parent, by incorporating a five-notch uplift from BBSA's stand-alone credit profile. Due to the current recession's adverse impact on BBSA's financial...
Companies mentioned in this report are: Barclays Bank S.A.
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Barclays Bank S.A.