S&P turns Spanish banks view to positive

S&P said it changed its outlooks for Banco de Credito Social Cooperativo SA and Cajamar Caja Rural SCC to positive from stable and affirmed the BB long-term issuer credit ratings.

The agency said it considers both banks as core subsidiaries of Grupo Cooperativo Cajamar.

“The outlook revision reflects that despite some deterioration, Cajamar will be able to preserve its enhanced risk profile in the coming quarters. It also follows the material improvement we observed in Cajamar's asset quality. We consider that management's focus on reducing its stock of nonperforming assets (NPAs) has proven successful; the portfolio has reduced significantly through organic reduction and market sales,” S&P said in a press release.

The agency noted that at the end of March, Cajamar’s NPAs accounted for 6.5% of gross loans down from 24% in 2015 and 12.2% in pre-pandemic 2019.

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