Fitch lowers BBVA view to negative

Fitch Ratings said it revised the outlook on Banco Bilbao Vizcaya Argentaria SA's (BBVA) long-term issuer default rating to negative from stable and affirmed the issuer default rating at A-.

Fitch also said it affirmed the viability rating at A-.

The outlook revision reflects increased challenges from deteriorating operating environments and rising sovereign risks in some of BBVA's key foreign markets, in particular Turkey and Mexico, the agency explained.

Fitch said it believes BBVA has weathered recent periods of stress, in particular Spain's real estate and economic crisis relatively well, largely helped by its geographic diversification and modest risk appetite.

However, BBVA's geographic footprint is skewed towards volatile emerging markets when measured by risk-weighted assets and profits, the agency said.

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