...IDRs Driven by Support: The Long-Term Issuer Default Rating (IDR) of Liberbank S.A. is at its Support Rating Floor (SRF) based on Fitch Ratings' belief of a moderate probability of future state support, if required. The SRF reflects Liberbank's regional systemic importance to Spain. The Negative Outlook reflects potential reduction of state support in light of the EU's Bank Recovery and Resolution Directive (BRRD) and the Single Resolution Mechanism (SRM). VR Reflects Moderate Creditworthiness: The Viability Rating (VR) of Liberbank reflects a moderate degree of financial strength, primarily backed by improved capital and a better operating environment. However, the VR remains negatively influenced by a relatively large portfolio of legacy problematic assets and weak earnings. The VR also captures an adequate funding and liquidity profile, largely supported by a leading franchise in the regions of Asturias, Cantabria, Castilla-La Mancha and Extremadura. Capital Reinforced: In June 2014...
