Outlook: Negative
Action date: 07/24/2020
Rating action: Affirmed


The credit rating of Bankia S.A. (hereinafter, Bankia) of BBB+ with a negative outlook is based on a low profitability and NPL levels that place the entity in a weak starting position to face the consequences of the current economic shock in comparison to its rating peers. Although we expect its greater dependence on mortgage lending and its lower exposure to the SME segment - which is particularly fragile given the intensity and speed of the current shock - to be a major mitigating factor, we believe that its greater presence in the consumer credit segment could end up putting upward pressure on non-performing loans. However, at Axesor Rating we highlight its notable levels of capitalization and solvency, which far exceed regulatory requirements; and its more than adequate liquidity, which has even improved significantly over the last few years, with a solid and stable financing structure, and a persistent process of cost control supporting a higher efficiency in the group.


Date last rating: 07/24/2020
Date first rating: 07/24/2019