Moody’s Investors Service has upgraded the long and short term local and foreign currency deposit ratings of Catalunya Banc to A3/Prime-2 from Ba2/Not-Prime.
The bank’s long term local currency senior unsecured debt rating has also been upgraded to Baa1 from Ba2.
This action follows Catalunya Banc’s merger by absorption with its parent Banco Bilbao Vizcaya Argentaria (BBVA), effective as of 9 September 2016.
Following the merger, BBVA will assume all the assets and liabilities of Catalunya Banc. The shareholders of Catalunya Banc are expected to receive the BBVA shares delivered in the exchange on 14 September.
“Given that BBVA assumed all outstanding senior unsecured debt obligations of Catalunya Banc, the Baa1 senior unsecured debt rating carries a stable outlook in line with that assigned to the parent’s senior unsecured debt rating,” Moody’s said.