Banco Santander, S.A.

...Strong International Retail Franchise: Banco Santander, S.A.'s Long-Term Issuer Default Rating (IDR) is one notch above Spain's sovereign rating reflecting the diversification benefits from its solid retail franchises in several European and Latin American countries and the US. The group's ratings factor in its diversified franchise, fairly modest risk appetite, improving asset quality despite challenges from the acquisition of Banco Popular's S.A. in June 2017, resilient profit generation and adequate capitalisation. Fitch Ratings believes Santander's risk profile is correlated with the sovereign's despite international diversification. Domestic performance and asset quality have been sensitive to the economic environment. Funding access, stability and costs are also typically influenced by broad perceptions of sovereign risk. Popular Acquisition a Good Fit: The acquisition of Popular has increased the group's franchise in Spain and Portugal. The challenge for Santander is to maintain...

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