...Large Share of Stable Rating Outlooks: In southern Europe, 44 banks have Stable Outlooks on their Long-Term IDRs, while 11 have Positive Outlooks and only one is on Negative Outlook. The rating Outlook picture is notably different from that at end-2014, when about half of the portfolio was on Negative Outlook, underlining Fitch Ratings' view that fundamentals broadly continue to stabilise, albeit with notable divergence in the pace of recovery. Positive Outlooks Concentrated in Spain: Banks with Positive Outlooks are largely concentrated in Spain (33% of the rated Spanish banks portfolio), reflecting some upside potential from Spain's improved operating environment. Greek banks' Long-Term IDRs remain on restricted default (RD) where they were placed following the imposition of restrictions on the withdrawal of deposits on 29 June 2015, and therefore do not have Outlooks. Ratings Largely Fundamentals Driven: The vast majority of southern European banks' ratings are driven by their standalone...
