Standard&Poor's Rating Services said today that Banco Bilbao Vizcaya Argentaria, S.A.'s (BBVA; AA-/Negative/A-1+) agreement to sell its Brazilian affiliate BBV Banco to Banco Bradesco, S.A. for Brazilian reais 2 billion in cash plus 4.5% of Bradesco's share capital will not lead to a change in the ratings or outlook on the Spanish bank. Given that BBVA had already amortized the $491 million in goodwill generated in its Brazilian investments, the transaction will only represent a €244 million loss; this amount was already charged against reserves as a result of the depreciation of the Brazilian real since BBVA's initial investment in 1998. The sale represents a reduction in BBVA's exposure to Brazil, effectively diminishing the downward pressure on the
