Banco Bilbao Vizcaya Argentaria S.A.

Strong franchise in almost all markets where BBVA is present. Diversification benefits provided by foreign operations. Conservative risk management along with adequate capitalization. Sound and resilient operating profitability. Exposure to markets with higher-than-average economic risk compared to peers. Worsening asset quality prospects across all geography. The risk-adjusted capital measure has limited room to absorb harsher than expected economic deterioration. Our negative outlook on BBVA reflects the potential negative rating implications over our two-year outlook horizon of a sharp economic contraction in 2020 associated with COVID-19, which could weigh on the group's financial profile more than we currently expect. This could happen if BBVA's strong revenue streams and operating profitability prove insufficient to preserve the bank's capital at an adequate level

...(Editor's Note: On Oct. 1, 2020, we republished this report to correct the calculation of our risk-adjusted capital ratio and total adjusted capital. Figures were updated in the rationale, support section, as well as in table 3 and table 4)...

Full Report