...Support to IDRs for Now: The Long-Term Issuer Default Rating (IDR) of Banco Mare Nostrum S.A. (BMN) is at its Support Rating Floor (SRF) and reflects Fitch Ratings' belief there is a moderate probability of state support, if needed. The SRF reflects BMN's regional systemic importance, particularly in the region of Murcia, the Balearic Islands and the province of Granada. The Negative Outlook reflects a potential reduction of state support due to the EU's Bank Recovery and Resolution Directive (BRRD) and the Single Resolution Mechanism (SRM). Improved Fundamentals: BMN's Viability Rating (VR) reflects strengthened capital, largely helped by balance-sheet deleveraging, and a better operating environment in Spain. However, BMN's stand-alone profile is still negatively affected by weak, although improving, earnings and weak asset quality. The VR also captures a well-established retail franchise in the core regions that has supported an adequate funding and liquidity profile. Capital Boosted,...
