S&P affirms Banco Santander, Banco Bilbao

Standard & Poor's said it affirmed the AA/A-1+ long- and short-term counterparty credit ratings on Banco Santander, SA and Banco Bilbao Vizcaya Argentaria, SA.

The outlook remains negative.

"The affirmation reflects our view that Santander and BBVA are weathering the global financial and economic crisis relatively well, particularly the severe downturn in their domestic market, as well as in some other key geographic areas where they operate," S&P analyst Angela Cruz said in a statement.

"At the current level, the ratings on Santander reflect our view of its strong business profile, in particular its wide and sensible geographic diversification, solid market share in core markets, successful and well-executed strategy, and its strong, resilient operating profitability and solid capitalization, following a significant improvement in 2009," S&P analyst Elena Iparraguirre said.

The ratings also factor in the inherently higher credit risk embedded in Santander's Latin American exposures and in its domestic exposures to the distressed real estate sector, as well as Santander's proven appetite for acquisitions, the agency noted.

"The ratings on BBVA reflect our view of its strong franchise in its key markets, resilient financial performance, and conservative strategy," Cruz said.

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