We now see higher economic risk for banks operating in Spain following the rapid deterioration of the sovereign's creditworthiness, which has been reflected in our rating actions on Spain, including our recent two-notch downgrade. In our view Spanish banks face increased credit risk as Spain's weakening economy, public sector cuts, austerity measures, and high unemployment will likely hamper the creditworthiness and resilience of public and private sector borrowers. Nevertheless, we think Banco Bilbao Vizcaya Argentaria's (BBVA) business and financial profiles will remain consistent with our current ratings even after it absorbs the negative impact of what we see as increased economic risk in the Spanish economy. We are therefore affirming our 'BBB-/A-3' long- and short-term ratings on BBVA. Our 'bbb+'
