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 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 (69% of total assets) and Mexico (15%). In 2004, a more dynamic approach through BBVA's cohesive and efficient network stopped the deterioration of the previous two years in the bank's market share in Spain. Operating profitability is healthy, and capital ratios are adequate and have remained stable in the past few years. BBVA financed the acquisition of minority interests in Mexico mostly with fresh
