The ratings on Banco Bilbao Vizcaya Argentaria S.A. (BBVA) reflect the balance between the bank's strong domestic franchise and financial profile, and the heightened risk resulting from its exposure to Latin America. BBVA has in the past few years invested heavily in Latin America, where the group has reached a 10% market share in customer deposits--with a noticeably strong position in Mexico--and 28.5% in pension fund management. BBVA's total investment in Latin America represents about one-half of the bank's adjusted core equity--excluding preferred stock. This expansion has been possible as a result of BBVA's strong and diversified position in all segments of Spanish banking, which continues to be its anchor, with market shares in all segments of Spanish banking of
