Moody’s put on review for upgrade the Ba3 rating of mortgage covered bonds issued by Banco de Valencia on Friday after having put the Spanish issuer on positive review following its integration with CaixaBank.

As part of a Fund for Orderly Bank Restructuring (FROB) plan, CaixaBank will be transferred all Banco the Valencia shares held by FROB and thereby gain control of at least 90% of the bank’s capital.

The review for upgrade of Banco de Valencia’s Caa1 rating reflects its integration into a stronger group, said Moody’s, as CaixaBank is rated Baa3, nine notches above Banco de Valencia. The rating agency also highlighted the existence of a “significant public support package” that will help the integration process. The support package includes a Eu4.5bn capital injection and an asset-protection scheme covering 72.5% of the losses that could arise from Banco de Valencia’s SME loans portfolio.