As the correction of economic imbalances in Spain progresses, trends in the real estate market stabilize, and the economy returns to growth, we expect banks' credit provisions to decline further. In our view, the economic risks faced by the Spanish banking system are abating, albeit from a high level, and the trend is stable. Bankia's capital continues to strengthen, supported by earnings retention and ongoing deleveraging. We are raising to 'BB' and 'B+', respectively, our long-term ratings on Bankia S.A. and its holding parent company Banco Financiero y de Ahorros S.A. The negative outlook on Bankia reflects our view that we could remove our notching for government support by year-end 2015 as resolution frameworks are put in place. On Nov.
