Fitch places BBVA unit on ratings watch negative after similar action on parent

Thursday, December 22, 2011

Fitch has placed BBVA Chile on ratings watch negative after taking the same action for eight Spanish banks, including parent BBVA (NYSE: BBV), earlier in December, the ratings agency said in a release.

The BBVA unit has a long-term national scale rating of AAA(cl).

BBVA Chile has achieved its strong current ratings thanks to the support it receives from BBVA, suggesting that a ratings downgrade for the parent would lead to similar action on the subsidiary, according to the release.

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In turn, the negative outlook for BBVA is due to the ratings watch negative placed on Spain's sovereign rating, which is currently AA-.

To read the full report in Spanish, go to this link