We believe the prospect of extraordinary government support for Spanish banks is now uncertain in view of the country's well-advanced and effective resolution regime. We are therefore removing the one notch of uplift for government support that we had previously incorporated in the long-term counterparty credit ratings on Bankia S.A. We have also recognized a strengthening in Bankia's intrinsic creditworthiness. We consider that Bankia is unlikely to increase its additional loss-absorbing capacity (ALAC) above our 5.0% threshold within a four-year projection period. We are revising the outlook to positive from stable and affirming the ratings on Bankia and its parent company BFA Tenedora de Acciones S.A.U. at 'BB/B' and 'B+/B', respectively. The positive outlook reflects the possibility we could raise
