Fitch downgraded the long term issuer default rating and support rating floor of Spain’s Bankia yesterday (Wednesday) because it considers that the bank’s systemic importance has decreased.

The issuer default rating (IDR) and support rating floor (SRF) were each lowered from BBB to BBB-.

The rating actions follow a reassessment of Bankia’s systemic importance, with Fitch noting that although the bank remains Spain’s fourth largest banking group its size, relative to the country’s three largest banks, has diminished.

“In Fitch’s view, this results in a potential reduction of the authorities’ propensity to support Bankia, in case of need,” said the rating agency.

However, it said that a Support Rating of 2 for Bankia reflects a still high likelihood of state support given its size and relative systemic importance, with a deposit market share of almost 10%.

“Its franchise continues to be meaningfully larger [than] (albeit closer to) that of second tier Spanish banks,” said Fitch. “Bankia’s SRF is therefore one notch higher, at BBB-, than the SRFs of these second tier banks.”

Fitch yesterday also affirmed at BB+ the ratings of NCG Bank, Banco Mare Nostrum and Liberbank, including the latter’s bank subsidiary Banco de Castilla-La Mancha.

The ratings, including Bankia’s, were removed from Rating Watch Negative. The outlook is negative.