MADRID - Fitch Ratings has elevated the credit ratings of Banco Santander (BME:SAN) S.A., one of the Eurozone’s leading banking institutions, reflecting a positive assessment of the bank’s financial health. The upgrade includes a rise in the Long Term Issuer Default Rating (IDR) from ’A-’ to ’A’, and the Short Term IDR from ’F2’ to ’F1’. Additionally, Santander’s Viability Rating has advanced from ’a-’ to ’a’, with the outlook on the IDR being classified as stable.
The rating actions, which took place on Tuesday, also saw improvements across a range of Santander’s financial instruments. The bank’s Derivative Counterparty Rating (DCR) was lifted from ’A(dcr)’ to ’A+(dcr)’, and its preferred long-term debt rating from ’BB’ to ’BB+’. Moreover, Santander’s senior non-preferred long-term debt, long-term deposits, and senior preferred long-term debt ratings all experienced an upgrade by one notch.
Subordinated long-term debt ratings were also raised from ’BBB’ to ’BBB+’. These enhancements place Santander’s ratings one notch above the Spanish sovereign Long-Term IDR of ’A-’ with a Positive outlook.
Fitch’s rating upgrades signify a vote of confidence in Santander’s creditworthiness and its ability to meet financial commitments. The stable outlook attached to the Long Term IDR suggests a low likelihood of change in the near term, indicating a stable financial and operational environment for the bank.
It is important to note that the information provided is based on a press release statement and does not constitute an offer to sell or the solicitation of an offer to buy any securities. The upgrades are a testament to Santander’s robust financial profile and are anticipated to be well-received by investors and stakeholders.
These ratings are crucial for investors and market participants as they assess the risk associated with the bank’s debt and its overall financial stability. Higher ratings often lead to lower borrowing costs and reflect a financial institution’s strong ability to meet its obligations.
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