Fitch lifts GCC view to positive

Fitch Ratings said it revised the outlook on Grupo Cooperativo Cajamar's (GCC) long-term issuer default rating to positive from stable.

Fitch also said it affirmed the company's long-term issuer default rating at BB-, short-term issuer default rating at B and viability rating at BB-.

The agency also said it revised the outlook to positive on GCC's central bank, Banco de Credito Social Cooperativo, SA and GCC's largest cooperative bank, Cajamar Caja Rural, Sociedad Cooperativa de Credito (Cajamar Caja Rural)

GCC is not a legal entity, but a cooperative banking group, Fitch explained.

The ratings reflect the group's improving, but still weak, asset quality metrics, which result in a high capital encumbrance to unreserved problem assets and modest core banking profitability, the agency said.

The ratings also consider its adequate retail franchise as the largest cooperative bank in Spain and acceptable funding and liquidity, Fitch said.

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