Fitch rating agency takes Abanca out of junk bond
The risk measurement agency Fitch has raised the long-term rating of Abanca, from BB + to BBB-, which means taking the financial institution out of what is commonly known as a junk bond and granting it an investment grade category.
The Galician entity is included in the group of rated entities with investment grade by Fitch, among which are the main national banks, according to a statement on the entity that collects the CNMV website.
The US agency recognizes that Abanca "income generation has improved structurally, driven by the growth of credit and the greater volume of off-balance sheet products."
Fitch Ratings bases its decision on improving the quality of Abanca's assets, its solid capital and liquidity position, and the strengthening of its franchise.
The agency also appreciates the recent acquisitions of Deutsche Bank Portugal and Banco Caixa Geral, to the extent that they will help diversify and strengthen the capacity to generate revenue.
The action announced today by the agency of risk measurement joins the improvement in the rating of the mortgage bonds reported yesterday by S & P, which placed them at the highest possible grade.
Abanca already has two ratings in the investment grade category among the four agencies recognized by the European Central Bank.
