Banco Popular Espanol, S.A.
- ID: 1713984
- July 2010
- Standard & Poors
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
Sound franchise. Resilient revenue generation and outperforming efficiency. Adequate solvency. High credit risk partly from high exposure to real estate developers. Higher reliance on wholesale funding than peers. More limited business and geographic diversification than for other large universal banks. The ratings on Banco Popular Espa-ol, S.A. (Popular) incorporate Standard & Poor's Ratings Services' view of the bank's high systemic importance in the Spanish system, solid franchise, resilient revenue generation, outperforming efficiency, and adequate solvency. Counterbalancing these strengths are the bank's high credit risk and stock of problem assets, and higher reliance on wholesale funding and lower diversification than for other Spanish universal banks. Given Popular's position as Spain's fifth-largest banking group, we consider it to have high systemic importance...
Companies mentioned in this report are: Banco Popular Espanol, S.A.