Bulletin: Ratings On BBVA Not Immediately Affected By Agreement To Divest Real Estate Portfolio In Spain And Chilean Operations

MADRID (S&P Global Ratings) Nov. 30, 2017--S&P Global Ratings said today that its ratings on Banco Bilbao Vizcaya Argentaria S.A. (BBVA; BBB+/Positive/A-2) are not immediately affected by the two transactions that the bank announced this week. We view both deals positively, however. On Nov. 29, 2017, BBVA agreed to transfer the remaining stock of its Spanish real estate assets, with a gross value of about €13 billion, to a joint venture that will be 80%-20% owned by Cerberus Capital Management LP and BBVA, respectively. Although we are not taking a rating action, we view the deal positively as it reduces net legacy problematic assets by €5 billion, with no meaningful impact on profit and loss, in exchange for a €1

...MADRID (S&P Global Ratings) Nov. 30, 2017--S&P Global Ratings said today that its ratings on Banco Bilbao Vizcaya Argentaria S.A. (BBVA; ###+/Positive/A-2) are not immediately affected by the two transactions that the bank announced this week. We view both deals positively, however. On Nov. 29, 2017, BBVA agreed to transfer the remaining stock of its Spanish real estate assets, with a gross value of about 13 billion, to a joint venture that will be 80%-20% owned by Cerberus Capital Management LP and BBVA, respectively. Although we are not taking a rating action, we view the deal positively as it reduces net legacy problematic assets by 5 billion, with no meaningful impact on profit and loss, in exchange for a 1 billion equity interest in the new company. The transfer also means that the bank will no longer have to dedicate resources to the administration of the portfolio, which is not its core business and is time consuming and costly. As a result, we also expect the downsizing of BBVA's...

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