...Progressing Integration: Unicaja Banco S.A.'s ratings reflect the bank's good regional franchise, progress in achieving planned synergies on the integration of Espa±aDuero, which it bought in 2014, and the bank's comfortable funding and liquidity position. The ratings also factor in Unicaja's weak, albeit improving, asset-quality indicators by international standards and its modest profitability. IPO Improves Capital Quality: Unicaja completed its initial public offering (IPO) in July 2017 and raised EUR756 million of capital that allowed it to repay the EUR604 million outstanding state-owned contingent convertible bonds (CoCos), which were not included in Fitch Core Capital (FCC). Regulatory capital levels have been stable. This transaction will reduce interest expenses materially. Part of the proceeds will be used to acquire the state's stake in Espa±aDuero, which should facilitate the full execution of the planned integration synergies. Weak but Strengthening Asset Quality: Unicaja's...
