...Turnaround since Recapitalisation: The ratings on Bankia S.A. reflect its turnaround since recapitalisation, experienced management, a large national retail franchise, average risk appetite, strengthened capitalisation and internal capital generation, and improved funding and liquidity. The ratings also reflect the bank's weak, but improving, asset quality, earnings diversification that is below peers' and the challenge of integrating Banco Mare Nostrum S.A. (BMN). BMN Acquisition Closing: The merger between Bankia and BMN is expected to close by end-2017 or the beginning of 2018 following regulatory approval. BMN will consolidate Bankia's position as the fourth-largest bank in Spain with loan and deposit market shares of about 10%. BMN accounted for about 17% of the combined bank's loans and 22% of deposits at end-2016 and its business profile is similar to that of Bankia, which eases integration risks. Problem Asset Reduction Continues: Bankia's problem asset (non-performing loans (NPLs)...
