The ratings on Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) reflect the bank's strong franchise in its core markets, above-average financial performance, and conservative management. They also take into account the bank's higher reliance on emerging markets compared with international peers, and integration risk from recent acquisitions. BBVA enjoys sound operating profitability, owing to the successful creation of solid franchises in different countries, where it has diversified and strong positions in all banking and parabanking businesses. It has a dynamic network in Spain, a clear leading position in Mexico, good performance at its other smaller Latin American subsidiaries, and diversified contribution from other business. The bank benefits from good earnings momentum and a strict cost control culture across all business units.
