Powerful retail banking franchise in Spain and well diversified business model. Improved capital base on the back of balance sheet derisking, conservative risk management, and organic capital generation in the last few years. Balanced funding profile and comfortable liquidity buffer. Geographic concentration in Spain and Portugal. High capital consumption in insurance and equity holdings. Heightened pressure on already limited profitability prospects as the economy enters a sharp recession. The stable outlook on CaixaBank balances potential pressure on its stand-alone creditworthiness with the benefits that it derives from the accumulation of bail-inable debt, which will protect senior bondholders in a resolution scenario. Despite the stable outlook, a lower stand-alone credit profile (SACP) will lead us to lower the ratings on the
