Link Securities | Credit rating agency Fitch Ratings has confirmed Banco Santander’s (SAN) long-term issuer rating at “A” with a “stable” outlook thanks to its ‘stable, balanced and geographically diversified universal banking operations, with strong franchises in several key markets and a leading consumer finance business in Europe,’ according to the Bolsamanía website.
The agency also highlighted that its business profile and ‘effective’ risk management support ‘solid profitability’, offsetting lower capital ratios and asset quality compared to its higher-rated European peers. ‘SAN’s funding benefits from its growing deposit base, while maintaining access to diverse sources of wholesale funding.’ In addition, Fitch focuses on the fact that the improvement in the assessment of SAN’s operating environment, which is now in line with that of its Spanish peers, despite the group’s significant exposure to emerging markets, benefits from growth opportunities not only in Spain but also in other key mature markets.
