Standard & Poor’s yesterday (Thursday) upgraded two Spanish covered bond programmes by two notches and two by one notch, completing actions on a total of 11 that were undertaken as part of an application of the rating agency’s new methodology.

S&P upgraded the programmes of Cajas Rurales Unidas and Catalunya Banc by two notches, from BBB- to BBB+, and raised those of Abanca Corporacion Bancaria and Banco Popular Espanol by one notch, from BBB to BBB+. Catalunya Banc’s programme was left on CreditWatch positive, reflecting the rating agency’s view on the issuer’s creditworthiness, it said, while the other three are on stable outlook.

Meanwhile, S&P affirmed the A ratings of programmes of Banco Bilbao Vizcaya Argentaria, Bankia, Bankinter, Barclays Bank SAU, CaixaBank, Deutsche Bank SAE, and Kutxabank.

The rating agency explained that its assessment of the expected jurisdictional support for covered bond programmes in Spain is “very strong”, meaning that under its criteria the uplift from programmes’ reference rating levels (RRLs) can be up to three notches.

S&P added that the programmes that are capped by Spain’s sovereign ceiling at A are on stable outlook, while those not capped according to the sovereign’s rating have been assigned an outlook in line with S&P’s view of the issuer’s creditworthiness.