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May 15 (The following statement was released by the rating agency)
Fitch Ratings has assigned Bankia, S.A.'s EUR1bn lower tier 2 subordinated debt, issued
under its EUR30bn debt issuance programme, a 'B+' rating.
KEY RATING DRIVERS
The debt is notched down one level from Bankia's Viability Rating (VR) of 'bb-'
for loss severity because of lower recovery expectations relative to senior
unsecured debt. The securities are subordinated to all senior creditors.There is
no notching for incremental non-performance risk relative to the bank's VR,
reflecting no coupon flexibility. The rating is in line with Fitch's criteria
'Assessing and Rating Bank Subordinated and Hybrid Securities'.
The securities have a 10-year maturity, bear a fixed reset coupon rate from year
five and are callable by the issuer from year five, subject to regulatory
As the securities are notched from Bankia's VR, their rating is sensitive to
changes in the bank's VR.