Spanish bank BBVA has announced the acquisition of a 24.9% stake in Turkish Garanti for $5.8 billion and a shareholders' agreement with Garanti's other major owner, Dogus Group, for joint control. BBVA has simultaneously announced a €5.1 billion rights issue. The higher risks stemming from the exposure to the Turkish market would, in our view, be partly mitigated by BBVA's conservative approach to the stake acquisition. We are therefore affirming our 'AA/A-1+' counterparty credit ratings on BBVA. The outlook remains negative, largely reflecting the potential for greater deterioration in the bank's financial profile than we currently envisage due to the unfavorable environment we anticipate, particularly in BBVA's domestic market. MADRID (Standard&Poor's) Nov. 4, 2010--Standard&Poor's Ratings Services
