Following Santander’s Investor day on April 3rd, Scope Ratings has affirmed its long- and short-term ratings on Banco Santander SA. At the same time, it has assigned a BBB- rating to Santander’s USD1.2bn 7.5% AT1 notes issued in February 2019.

Sound economic performance, commitment to structural reforms, effective fiscal consolidation and euro area membership support the rating. Vulnerabilities to external shocks, subdued potential growth and unfavourable demographics remain challenges.

Rating upgrades address new seniority ranking in resolution following the passage of Decree Law 11/2017 and are in line with Scope’s bank rating methodology.