Standard & Poor’s followed up on an improvement in Spain’s outlook from negative to stable last Friday (29 November) by improving the outlooks on the mortgage covered bonds of four Spanish issuers yesterday (Thursday).

Bankinter

The outlook on Bankinter’s cédulas hipotecarias (CH), rated A, was improved from stable to positive, while those of Banco Bilbao Vizcaya Argentaria (BBVA) (A-), CaixaBank (AA-) and Ibercaja (A) were moved from negative to stable.

The improvements to the four outlooks come after S&P’s decision to upgrade Spain’s outlook resulted in better outlooks for the four Spanish banks: BBVA to BBB-, stable; CaixaBank to BBB-, stable; Ibercaja to BB, stable; and Bankinter to BB, positive.

“Under our rating approach, the outlook revisions on these banks directly affect the ratings on the banks’ mortgage covered bonds, all else being equal,” said the rating agency.

The outlook on a Deutsche Bank SAE mortgage covered bond programme, rated AA-, was also improved, from negative to stable.