...VR-Driven IDRs: Unicaja Banco S.A.'s Issuer Default Ratings (IDRs) reflect the weakening of the group risk profile by the acquisition of Banco de Caja Espana de Inversiones, Salamanca y Soria, S.A. (Banco CEISS) in 2014. The Viability Rating (VR) reflects management's ability to turn the bank around, its strong regional franchises and its adequate funding and liquidity. However, the VR also factors in the need to improve still weak asset quality and undermined core profitability. Manageable Acquisition: Unicaja's management is well placed to face the challenge of turning Banco CEISS around, and in particular, increasing its earnings generation capacity. The integration of Banco CEISS, 60.7% owned, has been progressing, particularly in implementing policies, procedures and controls. Improving Capital: The group's capital has been improving thanks to earnings retention and loan de-leveraging. The consolidated Fitch Core Capital (FCC) ratio was 8.1% at end-1H15 and its phased-in common equity...
