DBRS Morningstar Assigns Ratings to BBVA’s Senior Non-Preferred Debt at "A" with Stable Trend

DBRS Ratings GmbH (DBRS Morningstar) assigned ratings to Banco Bilbao Vizcaya Argentaria S.A. (BBVA or the Bank) Senior Non-Preferred Debt at “A” with a Stable trend. These instruments are included in the Bank’s EUR 40 billion Global Medium Term Note Programme dated July 20, 2023 (the Programme). A full list of rating actions is included at the end of this press release.

KEY CREDIT RATING CONSIDERATIONS

In line with the Bank Obligations Framework set out in DBRS Morningstar’s Global Methodology for Rating Banks and Banking Organisations (June 2023), Senior Non-Preferred Debt issued under the Programme will be rated one notch below the Bank’s Long-Term Issuer Rating and Intrinsic Assessment (IA) of A (high).

CREDIT RATING DRIVERS
Any positive change in the Bank’s Intrinsic Assessment would have positive implications for the Senior Non-Preferred Debt rating.

Similarly, any negative change in the Bank’s Intrinsic Assessment would have negative implications for the rating.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS

There were no Environmental, Social or Governance factors that had a significant or relevant effect on the credit analysis.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings (4 July 2023) - https://www.dbrsmorningstar.com/research/416784/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings.

Notes:

All figures are in EUR unless otherwise noted.

The principal methodology is the Global Methodology for Rating Banks and Banking Organisations (22 June 2023) - https://www.dbrsmorningstar.com/research/415978/global-methodology-for-rating-banks-and-banking-organisations.

In addition DBRS Morningstar uses the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings https://www.dbrsmorningstar.com/research/416784/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings in its consideration of ESG factors.

The credit rating methodologies used in the analysis of this transaction can be found at: https://www.dbrsmorningstar.com/about/methodologies

The sources of information used for this credit rating include Morningstar Inc. and Company Documents, BBVA GMTN Programme from July 20, 2023. DBRS Morningstar considers the information available to it for the purposes of providing this credit rating to be of satisfactory quality.

This credit rating concerns a newly issued financial instrument. This is the first DBRS Morningstar credit rating on this financial instrument.

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

The conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. DBRS Morningstar's outlooks and credit ratings are under regular surveillance.

For further information on DBRS Morningstar historical default rates published by the European Securities and Markets Authority (ESMA) in a central repository, see: https://registers.esma.europa.eu/cerep-publication. For further information on DBRS Morningstar historical default rates published by the Financial Conduct Authority (FCA) in a central repository, see https://data.fca.org.uk/#/ceres/craStats.

The sensitivity analysis of the relevant key credit rating assumptions can be found at: https://www.dbrsmorningstar.com/research/422079/.

This credit rating is endorsed by DBRS Ratings Limited for use in the United Kingdom.

Lead Analyst: Arnaud Journois, Vice President, Global FIG
Rating Committee Chair: Elisabeth Rudman, Managing Director, Head of Global FIG
Initial Rating Date: November 23, 2009
Last Rating Date: March 28, 2023

DBRS Ratings GmbH
Neue Mainzer Straße 75
Tel. +49 (69) 8088 3500
60311 Frankfurt am Main Deutschland
Geschäftsführer: Detlef Scholz
Amtsgericht Frankfurt am Main, HRB 110259

For more information on this credit or on this industry, visit www.dbrsmorningstar.com.