Moody's changes Kutxabank outlook to stable

Moody's Investors Service said it changed Kutxabank, SA's outlook to stable from negative and affirmed its Ba1 long-term senior debt rating and Ba3 subordinated debt rating.

The outlook change reflects the agency's view that the downside risks to the bank's standalone rating have diminished. Throughout the Spanish banking crisis and taking into account also the acquisition of troubled savings bank Cajasur, Kutxabank has demonstrated a continuing ability to generate capital internally despite significant growth of its non-performing assets and subdued business activities, Moody's said. In view of the somewhat diminishing challenges from the operating environment, the agency expects that any further deterioration in asset quality and related provisioning requirements is likely to be limited.

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