...Leading Domestic Franchise: CaixaBank, S.A.'s ratings are mainly driven by its leading domestic franchise and broad business diversification, improving but still weak asset quality and adequate capitalisation, which is still at risk from unreserved problem assets. They also factor in reduced but still significant market risk exposure from equity investments, resilient but modest earnings and robust funding and liquidity. Offer Made for BPI: CaixaBank made a voluntary tender offer (VTO) in April 2016 to buy Portugal's Banco BPI S.A. (BPI), in which it already has a stake of 45%. CaixaBank's ratings reflect Fitch Ratings' expectation that if the transaction goes ahead the bank's credit profile will not be materially affected, any capital erosion will be restored in the short term and BPI's excess risk concentration to Angola will be addressed within a fairly short time frame. Positive Loan-Quality Trend: CaixaBank experienced a steady decline in non-performing loans (NPLs) in 2015, continuing...
