The ratings on Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) reflect the bank's strong domestic franchise and financial performance, reduced risk from Latin America, and conservative risk profile. BBVA maintains a diversified and strong position in all segments of Spanish banking. Although the group has lost some market share during the past two years, it has achieved a cohesive and efficient network that has further growth potential in the Spanish market. Capital ratios and operating profitability have remained stable in the past few years. The bank has benefited from the resilience of the Spanish economy in the context of a weak international environment and from the improving efficiency resulting from its cost-cutting program. BBVA has recently reduced its exposure to Latin
