S&P lifts Ibercaja preferreds

Standard & Poor's said it raised its issue ratings to CCC- from C on the remaining preferred stock issued by Ibercaja Banco SA.

The agency also raised the ratings on the company's remaining nondeferrable subordinated debt to BB- from D.

S&P said the rating action follows the bank's announcement on Nov. 21, that it completed its Nov. 12 tender offer launched to repurchase, among other securities, its outstanding preferred stock and nondeferrable subordinated debt securities.

In its media release on Nov. 15, S&P said it considered Ibercaja's tender offer be a distressed exchange. According to S&P's criteria for a distressed exchange, the agency lowered its issue ratings to C on the preferred stock and to D on the nondeferrable subordinated debt.

The agency said it decided to raise the ratings on the preferred stock to CCC- from C to reflect its view that, although the distressed exchange offer has been completed, there is a high probability of nonpayment of the preferred stock dividends in the fiscal year ending June 30, 2014.

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