The ratings on Spain-based Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) reflect our view of the bank's strong franchise in its core markets, above-average financial performance, and conservative management. In our opinion, its good performance and credit risk management somewhat offset its higher reliance on emerging markets, deteriorating asset quality, and lower degree of diversification than for some international peers. BBVA enjoys strong operating profitability across all business units. We believe that the bank will maintain this profitability, which should help it weather the current economic downturn. Its strong profits are the result of the successful creation of solid franchises in various countries, with strong positions in all banking and ancillary businesses in Spain and Latin America, particularly in Mexico. BBVA
