Today's actions follow the rating confirmations of Santander (standalone bank financial strength rating (BFSR)/baseline credit assessment (BCA) of C-/baa2, negative outlook) and BBVA (standalone BFSR/BCA of D+/baa3, negative outlook). These actions are discussed in the press release "Moody's concludes rating reviews on majority of Spanish banks after sovereign rating confirmation," dated 24 October 2012 and available on moodys.com.
LIST OF AFFECTED RATINGS Subsidiaries of Santander: - Santander Holdings USA, Inc. (SHUSA): all long- and short-term ratings (senior at Baa2) confirmed; negative outlook assigned
- Sovereign Capital Trust IV: Ba1 (hyb) preferred stock rating confirmed; negative outlook assigned
- Sovereign Capital Trust V: (P)Ba1 preferred stock rating confirmed
- Sovereign Capital Trust VI: Ba1 (hyb) preferred stock rating confirmed; negative outlook assigned
- Sovereign Bank, N.A.: all long- and short-term ratings (deposits at Baa1), including the standalone BFSR/BCA of C-/baa1, confirmed; stable outlook assigned
- Sovereign Real Estate Investment Trust: Ba1 (hyb) non-cumulative preferred stock rating confirmed; stable outlook assigned
- Banco Santander Puerto Rico: all long- and short-term ratings remain on review for downgrade; the standalone BFSR/BCA of C-/baa1, which was placed on review for downgrade on 10 April 2012 because of Puerto Rico's difficult operating environment, also remains on review for downgrade
Subsidiaries of BBVA:
- BBVA USA Bancshares, Inc.: Baa3 long-term issuer rating confirmed; stable outlook assigned
- Compass Bank: all long- and short-term ratings (deposits at Baa2), including the standalone BFSR/BCA of C-/baa2, confirmed; stable outlook assigned
- Phoenix Loan Holdings: Ba2 (hyb) non-cumulative preferred stock rating confirmed; stable outlook assigned
- Banco Bilbao Vizcaya Argentaria Puerto Rico: all long- and short-term ratings remain on review for downgrade; the standalone BFSR/BCA of C-/baa2, which was placed on review for downgrade on 10 April 2012 because of Puerto Rico's difficult operating environment, also remains on review for downgrade
For additional information on bank ratings, please refer to the webpage containing Moody's related announcements: http://www.moodys.com/bankratings2012.
RATINGS RATIONALE
Today's confirmations of the US subsidiaries' ratings follow the confirmations of their parents' standalone ratings and reflect Moody's view that the bank subsidiaries are sufficiently insulated from problems at their parent companies to support higher standalone ratings. This view is underpinned by the strong regulatory ring-fencing in the US, which should prevent extraordinary capital and liquidity flows from the subsidiaries to their Spanish parents.
Other key considerations supporting Moody's view that the subsidiaries are relatively independent from their parents include: 1) the bank subsidiaries are primarily core deposit-funded and have limited reliance on short-term, confidence sensitive wholesale funding, 2) the bank subsidiaries have their own customers that are almost entirely US-based, and they do not derive significant revenues from providing services to their parents' customers or from distribution of their parents' products, 3) the bank subsidiaries and their US holding companies have separate boards of directors with independent members, 4) the subsidiaries have their own infrastructures and are not heavily reliant on their parents for key business/control functions, and 5) the subsidiaries are relatively insulated from the macroeconomic pressures affecting their parents in Spain.
Following today's confirmations, the standalone ratings of Santander's and BBVA's lead US banks (Sovereign Bank and Compass Bank, respectively) remain one notch above their parents' respective standalone ratings. Given the characteristics described above, Moody's said that a one-notch downgrade of the parents' standalone ratings likely would not affect the standalone ratings of the bank subsidiaries. This is reflected in the stable outlooks on Sovereign Bank and all of BBVA's US subsidiaries, including Compass Bank. Moody's added that these entities had stable outlooks prior to this latest review for downgrade, reflecting their good capital positions, improvement in their profitability and asset quality metrics, and reductions in their asset concentrations.
The ratings of Santander's US holding company, SHUSA, and its capital trust subsidiaries continue to benefit from one notch of parental support uplift given Santander's continued capacity to support these subsidiaries. This is reflected in Santander's standalone rating of baa2, one notch above SHUSA's intrinsic financial strength of baa3. A one-notch downgrade of Santander's standalone rating would likely result in the removal of parental support uplift at SHUSA. As a result, following today's confirmations, Moody's assigned a negative rating outlook to SHUSA and its capital trust subsidiaries, consistent with the negative outlook on its Spanish parent.
In the event of a multi-notch downgrade of the parents' standalone ratings, the standalone ratings of the bank subsidiaries would be reassessed. Although Moody's believes that the subsidiaries are reasonably insulated from their parents' credit issues, the linkages that do remain could have negative consequences for the subsidiaries if the parents' credit profiles weaken significantly. Those linkages include: 1) the subsidiaries' significant reliance on parental support in recent years, 2) shared name/branding to varying degrees, which could lead to contagion or confidence sensitivity issues, and 3) key members of management have come from their Spanish parents, which heightens the risk that those managers could be pulled out of the US if needed in Spain or other parts of the companies. Moody's added that significant deterioration in Santander's creditworthiness could also have a negative effect on SHUSA's funding profile, given its majority ownership of Santander Consumer USA, Inc., a subprime/near-prime auto finance company that is reliant on confidence sensitive wholesale funding to finance its operations.
As part of today's actions, Moody's continued the reviews for downgrade on the long- and short-term ratings of Banco Santander Puerto Rico and Banco Bilbao Vizcaya Argentaria Puerto Rico. The Puerto Rico bank subsidiaries' standalone ratings were initially placed on review for downgrade in April 2012, reflecting the adverse effects of Puerto Rico's ongoing recession on its banking sector, as well as the weak prospects for a sustainable recovery in the coming years. Moody's added that the reviews will consider the probability that parental support would be provided, if needed, and the parents' capacity to provide support. Moody's expects to conclude those reviews shortly.
The principal methodology used in these ratings was Moody's Consolidated Global Bank Rating Methodology published in June 2012. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.
REGULATORY DISCLOSURES
The Global Scale Credit Ratings on this press release that are issued by one of Moody's affiliates outside the EU are endorsed by Moody's Investors Service Ltd., One Canada Square, Canary Wharf, London E 14 5FA, UK, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the Moody's office that has issued a particular Credit Rating is available on www.moodys.com.
For ratings issued on a program, series or category/class of debt, this announcement provides relevant regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides relevant regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides relevant regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.
Moody's considers the quality of information available on the rated entities, obligations or credits satisfactory for the purposes of issuing these ratings.
Moody's adopts all necessary measures so that the information it uses in assigning the ratings is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process.
Please see Moody's Rating Symbols and Definitions on the Rating Process page on www.moodys.com for further information on the meaning of each rating category and the definition of default and recovery.
Please see ratings tab on the issuer/entity page on www.moodys.com for the last rating action and the rating history. The date on which some ratings were first released goes back to a time before Moody's ratings were fully digitized and accurate data may not be available. Consequently, Moody's provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information.
The below contact information is provided for information purposes only. Please see the issuer page on www.moodys.com for Moody's regulatory disclosure of the name of the lead analyst and the office that has issued the credit rating.
Joseph B Pucella Vice President - Senior Analyst Financial Institutions Group Moody'sInvestors Service, Inc.250 Greenwich StreetNew York, NY 10007 U.S.A. JOURNALISTS: 212-553-0376 SUBSCRIBERS: 212-553-1653Robert Franklyn Young MD - Financial Institutions Financial Institutions Group JOURNALISTS: 212-553-0376 SUBSCRIBERS: 212-553-1653 Releasing Office: Moody's Investors Service, Inc.250 Greenwich StreetNew York, NY 10007 U.S.A. JOURNALISTS: 212-553-0376 SUBSCRIBERS: 212-553-1653(C) 2012 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved.
CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. ("MIS") AND ITS AFFILIATES ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND CREDIT RATINGS AND RESEARCH PUBLICATIONS PUBLISHED BY MOODY'S ("MOODY'S PUBLICATIONS") MAY INCLUDE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY'S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY'S OPINIONS INCLUDED IN MOODY'S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. CREDIT RATINGS AND MOODY'S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY'S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY'S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY'S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY'S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.
ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED,DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT.
All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process. Under no circumstances shall MOODY'S have any liability to any person or entity for (a) any loss or damage in whole or in part caused by, resulting from, or relating to, any error negligent or otherwise or other circumstance or contingency within or outside the control of MOODY'S or any of its directors, officers, employees or agents in connection with the procurement, collection, compilation, analysis, interpretation, communication, publication or delivery of any such information, or (b) any direct, indirect, special, consequential, compensatory or incidental damages whatsoever (including without limitation, lost profits), even if MOODY'S is advised in advance of the possibility of such damages, resulting from the use of or inability to use, any such information. The ratings, financial reporting analysis, projections, and other observations, if any, constituting part of the information contained herein are, and must be construed solely as, statements of opinion and not statements of fact or recommendations to purchase, sell or hold any securities. Each user of the information contained herein must make its own study and evaluation of each security it may consider purchasing, holding or selling.
NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER.
MIS, a wholly-owned credit rating agency subsidiary of Moody's Corporation ("MCO"), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MIS have, prior to assignment of any rating, agreed to pay to MIS for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS's ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading "Shareholder Relations -- Corporate Governance -- Director and Shareholder Affiliation Policy."
Any publication into Australia of this document is by MOODY'S affiliate, Moody's Investors Service Pty Limited ABN 61 003 399 657, which holds Australian Financial Services License no. 336969. This document is intended to be provided only to "wholesale clients" within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY'S that you are, or are accessing the document as a representative of, a "wholesale client" and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to "retail clients" within the meaning of section 761G of the Corporations Act 2001.
Notwithstanding the foregoing, credit ratings assigned on and after October 1, 2010 by Moody's Japan K.K. ("MJKK") are MJKK's current opinions of the relative future credit risk of entities, credit commitments, or debt or debt-like securities. In such a case, "MIS" in the foregoing statements shall be deemed to be replaced with "MJKK". MJKK is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly owned by Moody's Overseas Holdings Inc., a wholly-owned subsidiary of MCO.
This credit rating is an opinion as to the creditworthiness or a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be dangerous for retail investors to make any investment decision based on this credit rating. If in doubt you should contact your financial or other professional adviser.
Nachrichten
ETF-Sparplan
Oskar ist der einfache und intelligente ETF-Sparplan. Er übernimmt die ETF-Auswahl, ist steuersmart, transparent und kostengünstig.