Solid retail banking franchise in Spain. Restructuring plan to lead to a more stable, less risky business and financial profile. Likelihood of Bankia receiving further state assistance if needed given its high systemic importance in Spain. Stretched capitalization. High reliance on ECB funding support, which will take time to unwind. Challenges related to the implementation of the restructuring plan. The negative outlook on Bankia S.A. primarily reflects the possibility that the group may not deliver the profits or capital strengthening that we expect. For example, this could happen if the cost that parent company, Banco Financiero y de Ahorros (BFA), has to assume for compensating clients for the misselling of hybrid instruments is well above the provisions that the group
