DBRS Lowers Santander to A (high) After Downgrade of Spain to A (high)

DBRS, Inc. (DBRS) has today downgraded the ratings of Banco Santander SA (Santander or the Group) following the downgrade of the Kingdom of Spain. DBRS has downgraded Santander’s Senior Unsecured Long-Term Debt & Deposit rating to A (high) from AA (low). At the same time, DBRS has confirmed the Group’s Short-Term Debt & Deposit rating at R-1 (middle). The trend on all ratings is Negative. These rating actions follow DBRS’s downgrade of the Kingdom of Spain to A (high) from AA (low), with the trend remaining Negative.

Santander’s intrinsic assessment (IA) of AA (low) remains unchanged. Additionally, DBRS maintains its SA-2 support assessments for Santander, which indicates an expectation of timely systemic support in case of need. However, with the current rating for the Spanish sovereign below the AA (low) intrinsic assessment for Santander, there is currently no uplift to the Group’s ratings.

Notes:
All figures in Euros (EUR) unless otherwise noted.

The principal applicable methodology is the Global Methodology for Rating Banks and Banking Organisations. Other methodologies used include the DBRS Criteria – Intrinsic and Support Assessments. Both can be found on the DBRS website under Methodologies.

The sources of information used for this rating include the DBRS rating of the Kingdom of Spain. DBRS considers the information available to it for the purposes of providing this rating was of satisfactory quality.

This credit rating has been issued outside the European Union (EU) and may be used for regulatory purposes by financial institutions in the EU.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

Lead Analyst: Roger Lister
Rating Committee Chair: Alan G. Reid
Initial Rating Date: 11 October 2006
Most Recent Rating Update: 9 December 2011

For additional information on this rating, please refer to the linking document under Related Research.