Moody's upgrades BBVA USA

Moody's Investors Service said it raised the ratings and assessments of BBVA USA Bancshares, Inc. and its subsidiaries, including its issuer rating to A3 from Baa2 and preferred share rating to Baa2(hyb) from Ba1(hyb).

The rating action follows the closing of PNC Financial Services Group, Inc.'s (PNC, A3 senior stable) acquisition of BBVA USA Bancshares, Inc. and its subsidiaries (collectively referred to as BBVA USA). The rating action concluded the review for upgrade of BBVA USA's ratings started on Nov. 16.

“The upgrade of BBVA USA's ratings and assessments reflect the benefits to BBVA USA's creditors resulting from the acquisition. The upgraded ratings and assessments as well as outlooks match those of PNC and its subsidiaries. Moody's said that as a commonly controlled Federal Deposit Insurance Corp. (FDIC)-insured depository institution, it considers BBVA USA's credit profile to be aligned with PNC's FDIC-insured U.S. bank and accordingly it has the same ratings profile.

Moody's said it will withdraw BBVA USA Bancshares, Inc.’s issuer and preferred stock ratings. The ratings and assessments of the bank subsidiary BBVA USA will remain outstanding until it is merged into PNC Bank, NA, which PNC expects to occur in October.

The outlook is stable.

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