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. We consider that Caixabank's improving profitability over the coming 18-24 months will continue to support its stronger solvency. As a result, we are raising our long- and short-term ratings on Caixabank to 'BBB/A-2' from 'BBB-/A-3'. The stable outlook takes into account the stable outlook on the sovereign credit rating on Spain. It also reflects our expectation that Caixabank will likely maintain its strengthened solvency levels, supported
