CaixaBank S.A. Upgraded To 'A' From 'A-' On Stronger Subordinated Bail-Inable Debt Buffer; Outlook Stable

During 2024, CaixaBank S.A. has issued €4.4 billion senior nonpreferred (SNP) and €1.0 billion subordinated Tier 2 debt, increasing the buffer of subordinated bail-inable instruments to about €24 billion as of end-2024, equivalent to 7% of S&P Global Ratings risk-weighted assets (RWAs). We expect this sizeable buffer of subordinated bail-inable instruments to be sustained, expanding its recapitalization capacity and providing strengthened protection to senior creditors in a resolution scenario. We therefore raised our long- and short-term issuer credit ratings on CaixaBank to 'A/A-1' from 'A-/A-2'. We also raised our long-term resolution counterparty ratings (RCR) to 'A+' from 'A' and affirmed our 'A-1' short-term RCR. The stable outlook reflects our view that CaixaBank will maintain an additional loss-absorbing capacity (ALAC) ratio

...November 14, 2024 - During 2024, CaixaBank S.A. has issued 4.4 billion senior nonpreferred (SNP) and 1.0 billion subordinated Tier 2 debt, increasing the buffer of subordinated bail-inable instruments to about 24 billion as of end-2024, equivalent to 7% of S&P Global Ratings risk-weighted assets (RWAs). - We expect this sizeable buffer of subordinated bail-inable instruments to be sustained, expanding its recapitalization capacity and providing strengthened protection to senior creditors in a resolution scenario. - We therefore raised our long- and short-term issuer credit ratings on CaixaBank to 'A/A-1' from 'A-/A-2'. We also raised our long-term resolution counterparty ratings (RCR) to 'A+' from 'A' and affirmed our 'A-1' short-term RCR. - The stable outlook reflects our view that CaixaBank will maintain an additional loss-absorbing capacity (ALAC) ratio above 6% of our RWAs, while preserving its solid profitability, powerful retail banking and insurance franchise, and dominant market...

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