Sound retail banking franchise in Spain. Better credit risk profile than domestic peers. Balanced funding structure and contained reliance on wholesale financing. Concentration in Spain. Still-poor operating performance given Spain's weak economic and operating environment. Risks inherent in holding a large equity portfolio. Standard&Poor's Ratings Services' outlook on Spain-based CaixaBank S.A. is negative, reflecting the possibility that we could lower the rating if the operating environment in Spain becomes more difficult than we currently forecast. The ratings reflect our belief that the bank will keep accumulating problem assets through the downturn, albeit at a significantly slower pace than its domestic peers. We also believe that the bank's organic capital generation, while pressured, will remain sufficient to preserve its
