DBRS Assigns Rating of A (low) with a Negative Trend to Banco Pastor

DBRS Ratings Limited (DBRS) has today assigned ratings to Banco Pastor, S.A. (Pastor). Pastor is a newly constituted Spanish bank that is 100% owned by Banco Popular Español S.A. (Popular). DBRS has assigned a Senior Long-Term Debt & Deposit rating of A (low) with a Negative trend and a Short-Term Debt & Deposit rating of R-1 (low) with a Stable trend to Pastor.

DBRS rates Popular’s Senior Unsecured Long-Term Debt & Deposit at A (low) with a Negative trend and Short-Term Debt & Deposit at R-1 (low) with a Stable trend. DBRS views Pastor as a core component of Popular’s franchise and, therefore, has assigned a support assessment of SA1 to the subsidiary. The SA1 designation implies strong and predictable support from the parent. As a supported rating with an SA1 designation, Pastor’s rating will generally move in tandem with Popular’s long-term debt ratings.

The equalisation of Pastor’s long-term debt rating of A (low) with Popular’s long-term debt rating of A (low) reflects the position of Pastor as a banking subsidiary domiciled within Spain. The ratings of Pastor reflect its important role in Banco Popular Group’s overall strategy and DBRS’s expectation that Popular has the resources and motivation to support Pastor, if needed. Pastor is a financial institution based in Galicia, Spain with approximately EUR 10 billion in assets. This compares to Popular’s total assets of EUR 153 billion at 3Q13.

Notes:
All figures are 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 company documents and SNL Financial. DBRS considers the information available to it for the purposes of providing this rating was of satisfactory quality.

Generally, the conditions that lead to the assignment of a Negative or Positive Trend are resolved within a twelve month period. DBRS’s outlooks and ratings are under regular surveillance

DBRS does not audit the information it receives in connection with the rating process, and it does not and cannot independently verify that information in every instance.

This is the first DBRS rating on this financial instrument.

Ratings assigned by DBRS Ratings Limited are subject to EU regulations only.

Lead Analyst: Rui Croca
Rating Committee Chair: Alan G. Reid
Initial Rating Date: 15 November 2013
Most Recent Rating Update: NA

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For additional information on this rating, please refer to the linking document located at: http://www.dbrs.com/research/236983/banks-and-banking-organisations-linking-document.pdf

Information regarding DBRS ratings, including definitions, policies and methodologies are available on www.dbrs.com.