Spain-Based Bankia Ratings Affirmed At 'BBB-/A-3' Following Merger Announcement; Outlook Still Positive

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. MADRID (S&P Global Ratings) June 28, 2017--S&P Global Ratings today 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'

...+ 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 '###-/A-3' long- and short-term ratings on Bankia and the '##+/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. MADRID (S&P Global Ratings) June 28, 2017--S&P Global Ratings today affirmed its '###-/A-3' long- and short-term counterparty credit ratings on Spain-based Bankia S.A. The outlook remains positive. We have also affirmed the '##+/B' long- and short-term counterparty credit ratings on Bankia's parent company BFA Tenedora de Acciones S.A.U. (BFA). The outlook remains positive. The affirmation follows Bankia's announcement on June...

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