December 11, 2012 / 11:16 AM / 5 years ago

TEXT-Fitch affirms & drops Banco CAM's ratings

(The following statement was released by the rating agency)

Dec 11 - Fitch Ratings has affirmed Banco CAM S.A.U.’s (Banco CAM) Long-term Issuer Default Ratings (IDR) at ‘BB+', Short-term IDR at‘B’ and Support Rating at ‘3’. Fitch has simultaneously withdrawn the ratings following a corporate reorganisation whereby Banco CAM has been merged into Banco de Sabadell (Sabadell; ‘BB+'/Stable). At the same time, Banco CAM’s senior and subordinated lower Tier 2 debt issues have been affirmed, as they have been assumed by Sabadell.


The rating actions are based on the completion of the integration process of Banco CAM into its parent bank, Sabadell on 8 December 2012. As a result, Banco CAM’s assets and liabilities have been transferred to Sabadell. Banco CAM has ceased to exist as a separate legal entity. Banco CAM’s IDRs have been driven solely by parental support since its acquisition by Sabadell on 1 June 2012.


The upgrades of upper Tier 2 and preferred stock to ‘B’ from ‘B-’ and ‘B-’ from ‘CCC’ reflect a relatively higher probability of them being performing in the future following the transfer to Sabadell. These are notched down from Sabadell’s Viability Rating (VR) of ‘bb+', in line with the agency’s assessment of each instrument’s risk of non-performance and relative loss severities. The upper Tier 2 is notched down twice for loss severity and twice for non-performance risk. The preferred stock is notched down twice for loss severity and three times for non-performance risk.


The ratings of the state-guaranteed debt issues by Banco CAM, which have also been transferred to Sabadell, are in line with the Long-term IDR of Spain (‘BBB’/Negative) and are thus sensitive to any change in this rating.

The rating actions on Banco CAM are as follows:

Long-term IDR: affirmed at ‘BB+', Outlook Stable; rating withdrawn

Short-term IDR: affirmed at ‘B’; rating withdrawn

Support Rating: affirmed at ‘3’; rating withdrawn

Senior unsecured long-term debt: affirmed at ‘BB+'; transferred to Sabadell

Commercial paper and senior unsecured short-term debt: affirmed at ‘B’; transferred to Sabadell

Subordinated lower Tier 2 debt: affirmed at ‘BB’; transferred to Sabadell

Subordinated upper Tier 2 debt: upgraded to from ‘B’ from ‘B-'; transferred to Sabadell

Preferred Stock: upgraded to ‘B-’ from ‘CCC’; transferred to Sabadell

State-guaranteed debt: affirmed at ‘BBB’; transferred to Sabadell

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