Fitch: Ratings changes for BBVA subsidiaries

Fitch Ratings said it took various rating actions on the Latin America subsidiaries of Banco Bilbao Vizcaya Argentaria (BBVA) following the June 11 downgrade of the company's issuer default ratings and viability rating.

The actions on BBVA's Latin America subsidiaries differ across companies and countries, Fitch said.

BBVA Bancomer's foreign-currency long-term issuer default rating was affirmed at A- and local-currency long-term issuer default rating at A-. The outlook was revised to negative from stable.

Casa de Bolsa BBVA Bancomer's long-term national rating was affirmed at AAA(mex) and short-term national rating was affirmed at F1+(mex).

Facileasing, SA de CV's long-term national rating was affirmed at AAA(mex), short-term national rating at F1+(mex) and short-term senior unsecured debt at F1+(mex) and long-term senior unsecured debt at AAA(mex).

BBVA Continental's long-term foreign-currency issuer default rating was affirmed at BBB+ and its long-term local-currency issuer default rating was downgraded to BBB+ from A-. The outlook was revised to negative from stable.

BBVA Colombia's long-term foreign-currency issuer default rating was affirmed at BBB, short-term foreign-currency issuer default rating at F2. Its long-term local-currency issuer default rating was downgraded to BBB from A- and its outlook was revised to negative from stable.

BBVA Chile's long-term national scale rating was downgraded to AA-(cl) from AA+(cl) and national long-term rating on senior unsecured bonds to AA-(cl) from AA+(cl). Its short-term national scale rating was affirmed at N1+(cl). Its outlook was revised to negative from stable.

Fitch said it believes Latin America remains strategically important to BBVA, which benefits from the geographic diversification of its Latin American subsidiaries and allows them to generate earnings internationally and make up for the muted results in Spain.

Growth prospects for emerging markets have recently been revised down, the agency said, and the subsidiaries are not entirely immune to global economic trends.

However, earnings from emerging markets will continue to contribute significantly to group earnings, Fitch said.

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