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 exposure to Latin America increases its risk profile, however, 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%). Its market shares in key products in Spain are stable, thanks to a dynamic approach through a cohesive and efficient network. In Mexico, BBVA is the leading institution, with market shares of 22%-29%. The bank has also developed a good franchise in other, smaller Latin American markets. Operating profitability is healthy, while capital ratios are adequate and have
