Outlook: Observation
Action date: 05/07/2020
Rating action: New


Bankinter S.A.'s credit rating (hereinafter, Bankinter) of A- under observation is supported by the higher profitability levels compared to its main peers given the wide diversification of its business lines, the more than adequate risk management with a historically low NPL rate, and the continuous achievement of its strategic objectives. We also underline its ability to continue to improve its liquidity position and maintain remarkable levels of efficiency despite its medium size. Our credit rating considers the solid stability of its depositors, the main source of funding, and the adequate solvency of the entity despite having figures below the average of the sector both in Spain and in Europe. On the other hand, our rating is constrained by Bankinter's limited size and its concentration of business in Spain, as well as by the potential litigation it may face following the Supreme Court's ruling on revolving cards, all of which reflect the growing importance of the consumer credit and revolving card business in Bankinter's activity. In addition, we expect lower future profitability due to the partial sale and loss of control of Línea Directa, the insurance company that accounts for almost 20% of the Group's consolidated revenues.


Date last rating: 05/07/2020
Date first rating: 05/07/2020