On Nov. 27, 2012, CaixaBank S.A. announced that the governing committee of Spain's Fondo de Reestructuración Ordenada Bancaria (FROB) has accepted its offer to acquire all of the shares the FROB holds in Banco de Valencia (BdV) for a total consideration of €1. In our view the terms of the transaction, which include the transfer of riskier assets to an external company, the recapitalization of BdV before the acquisition, and an asset protection scheme on a sizeable part of BdV's loan book, significantly reduce the downside risk we saw to Caixabank's financial profile. We are affirming our 'BBB-/A-3' long- and short-term ratings on Caixabank and our 'BB/B' long- and short-term ratings on its parent company Caja de Ahorros y Pensiones
