On May 23, 2013, Spanish bank, Bankia S.A., and its parent company Banco Financiero y de Ahorros S.A. (BFA) completed the last step of their recapitalization plan by buying back and converting preference shares and subordinated debt into equity. As a result, the group's capital strengthened by about €6.5 billion, bringing Bankia and its parent back into compliance with minimum regulatory capital ratios. We are therefore affirming our 'BB-/B' ratings on Bankia and our 'B-/C' ratings on parent company BFA and revising upward our stand-alone credit profile on Bankia to 'b+' from 'ccc+'. The negative outlook reflects the possibility that the bank may not strengthen its capital to the extent that we expect or may encounter problems in implementing its
