The ratings on Spain-based Banco Bilbao Vizcaya Argentaria S.A. (BBVA; AA-/Negative/A-1+) reflect Standard&Poor's Ratings Services' view of its strong franchise in key markets, sound credit risk management, conservative strategy and corporate culture, and, despite recent pressures, its solid loan loss absorption capacity through its recurrent earnings. These strengths are offset by high economic risk in Spain (Kingdom of) (AA-/Negative/A-1+) compared with the rest of the eurozone, BBVA's lower degree of diversification than its other 'AA-' rated peers, and its comparatively higher reliance on emerging markets. We see BBVA's capital as just adequate given its risk profile. BBVA holds outstanding business positions in its core markets of Spain and Mexico. As the second-largest financial institution in Spain, the bank
