The ratings on Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) reflect the bank's strong franchise in its core markets, healthy financial performance, and conservative management. BBVA's relatively large exposure to Latin America--albeit lower than in the past--increases its risk profile and adds some volatility to results. BBVA maintains a diversified and strong position in all segments of its core markets--primarily Spain (66% of total assets) and Mexico (18%). Although the group has lost some market share in Spain during the past three years, its franchise remains strong. A more dynamic approach through its cohesive and efficient network is already preventing further market-share deterioration. Operating profitability is healthy, and capital ratios are adequate and have remained stable in the past few years.
