The ratings on Bankia S.A.U., Spain's financial group resulting from the merger of seven savings banks, reflect Standard&Poor's Ratings Services' view of the group's high systemic importance for the Spanish banking sector, and, as result, of the likelihood of Bankia receiving timely and sufficient extraordinary financial support from the Kingdom of Spain (AA/Negative/A-1+) if necessary. Our ratings on Bankia consequently incorporate a two-notch uplift from our 'bbb' assessment of its stand-alone credit profile (SACP). Our opinion on Bankia's SACP takes into account the group's strong market position, substantially enhanced levels of credit provisions and prospects of improving profits. Offsetting factors are the significant implementation challenges that Bankia faces during the current integration phase, weak risk management, and modest
