Strong market positions in almost all markets where the bank operates, particularly Spain and Mexico Conservative management Sound credit risk management Above-average operating profitability Higher-than-peer reliance on emerging markets Asset quality that is set to deteriorate Lower diversification than for other large European peers Challenge of developing a U.S. franchise in a weak market The ratings on Spain-based Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) reflect our view of the bank's strong franchise in its core markets, above-average financial performance, and conservative management. In our opinion, its good performance and credit risk management somewhat offset its higher reliance on emerging markets, deteriorating asset quality, and lower degree of diversification than for some international peers. BBVA enjoys strong operating profitability across all
