On June 27, 2017, Spain-based Bankia S.A. announced that it has reached an agreement to absorb Banco Mare Nostrum S.A. Based on the disclosed terms, we anticipate that the deal will likely have limited impact on Bankia's creditworthiness. We are therefore affirming our 'BBB-/A-3' long- and short-term ratings on Bankia and the 'BB+/B' ratings on its parent company BFA Tenedora de Acciones S.A.U. The outlook on both entities remains positive, reflecting the possibility of an upgrade on a potentially more supportive economic and operating environment in Spain. On June 28, 2017, S&P Global Ratings affirmed its 'BBB-/A-3' long- and short-term counterparty credit ratings on Spain-based Bankia S.A. The outlook remains positive. We have also affirmed the 'BB+/B' long- and short-term
