On Dec. 4, 2006, Standard&Poor's Ratings Services revised its outlook to positive from stable on Spain's second-largest bank, Banco Bilbao Vizcaya Argentaria, S.A. (BBVA), and its subsidiary Banco de Crédito Local de España S.A., based on the group's improving performance, increasing diversification, and strict risk controls. At the same time, Standard&Poor's affirmed its 'AA-' long-term and 'A-1+' short-term counterparty credit ratings on both banks. The ratings on BBVA reflect the bank's strong franchise in its core markets, above-average financial performance, and conservative management. Its good performance and sound credit risk management somewhat offset higher reliance on emerging markets compared with that of international peers. BBVA enjoys sound operating profitability, thanks to the successful creation of solid
