Moody’s applies Ba2 to BBVA securities

Moody's Investors Service said it assigned a Ba2 (hyb) rating, with a stable outlook, to the non-step-up noncumulative contingent convertible perpetual preferred tier 1 securities of Banco Bilbao Vizcaya Argentaria, SA (BBVA, deposits Baa2 positive, bank financial strength rating C- stable/baseline credit assessment baa2).

Moody’s said the rating is based on BBVA's creditworthiness and is placed three notches below the bank's baa2 adjusted baseline credit assessment, in line with Moody's "global banks" rating methodology, guidelines for rating junior debt obligations.

The positioning of BBVA's Ba2 (hyb) rating takes into consideration the agency’s assessment of the risks of mandatory and/or discretionary coupon suspension on a non-cumulative basis, and the contractual equity conversion feature in combination with the tier 1 notes' deeply subordinated claim in liquidation.

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