NEW YORK, February 1 (FinanceEnquiry.com) - Standard & Poor’s Rating Services placed some Spain-based banks on CreditWatch with negative implications after the downgrade of the Kingdom of Spain on January 13, 2012.

 In a research note published on January 31, S&P downgraded its long-term and short-term sovereign ratings on the Kingdom of Spain from ‘'AA-/A-1+' to 'A/A-1'. Consequently, four Spain based banks are positioned on CreditWatch with negative implications on short-term ratings; while one bank on long-term rating and the issue ratings on the non-deferrable subordinated debt and hybrid instruments issued by four banks are also put on Creditwatch. Other ratings on Spanish banks were placed on CreditWatch negative. S&P is revising the reasons behind the CreditWatch placements. Subsequent to sovereign downgrade, CreditWatch placements reflect potential wider implications on the assessment of the Spanish financial sector’s economic and industry risks

Specifically, the ratings firm placed on CreditWatch with negative implications:

·         Our 'A-' issue ratings on Banco Bilbao Vizcaya Argentaria S.A.'s nondeferrable subordinated debt and our 'BBB' issue ratings on its Tier 1 hybrid notes.

·         Our 'BBB-' issue ratings on CaixaBank S.A. 's preferred stock.

·         Our 'A-2' short-term counterparty credit rating on Bankia S.A.

·         Our 'A-2' short-term counterparty credit rating on Ibercaja Banco S.A., our 'BBB-' issue ratings on its nondeferrable subordinated debt, and our 'BB' issue ratings on its preferred stock.

·         Our 'A-2' short-term counterparty credit rating on Bankinter S.A. , our 'BBB-' issue ratings on its nondeferrable subordinated debt, and our 'BB' issue rating on its preferred stock.

·         Our 'BBB/A-2' long- and short-term counterparty credit ratings on Banca Cica S.A.