The upgrade concludes the review for upgrade placed on Bankia’s ratings following the announcement of the merger with Caixabank.

The AAA/Stable covered bond rating was well supported by the credit quality of both the issuer and the cover pool. Generous overcollateralisation mitigated credit and cash flow risks. The ratings were withdrawn for business reasons.

The rating action follows the announcement by Bankia and Caixabank that the boards of the two banks have reached an agreement and aim to merge the two entities.

Bankia is rated BBB+, with a Stable Outlook. The rating was last affirmed on 31 July 2020.

While the deterioration in the operating environment will weigh on profitability in 2020, Scope expects cost of risk to remain manageable, due to the bank's conservative loan book.

Scope Ratings has updated its report on the cédulas hipotecarias (Spanish mortgage-covered bonds) issued by Bankia S.A.

Sound issuer quality and unchanged cover pool support continue to uphold the rating. Additional fundamental credit factors shield the bank’s covered bonds against adverse changes in the cover pool, limiting a potential downgrade.

Scope Ratings has updated its performance report on the cédulas hipotecarias (Spanish mortgage-covered bonds) issued by Bankia S.A.

The cover pool support continues to drive the rating. Fundamental credit factors also shield the bank’s covered bonds against adverse changes to the cover pool, limiting a potential downgrade.

Following the affirmation of the affirmation of the ratings on May 9, Scope Ratings has updated its issuer report on Bankia. Scope rates Bankia at BBB+ with stable outlook.