S&P lifts Banco Popular debt, lowers some preferreds

Standard & Poor's said it raised to CCC- from C the ratings on the remaining preferred stock of Banco Popular Espanol SA following the closing of the bank's tender offer.

S&P also said it raised to B- from D the rating on its remaining non-deferrable subordinated debt.

The agency also said it lowered the ratings on the preferred stock that was excluded from the tender offer to CCC- from CCC.

The action follows news that the bank completed its Nov. 30 tender offer launched to repurchase, among other securities, its outstanding preferred stock and non-deferrable subordinated debt securities, S&P said.

The CCC- issue rating on the preferred stock reflects the high probability of deferral or nonpayment of the dividends in the coming quarters, the agency said.

This is because S&P said it anticipates that the bank will report losses in 2012 as a result of Spain's new provisioning regulation.

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