Bankinter : DBRS upgrades Bankinter’s rating from ‘BBB’ (high) to ‘A’ (‘low’)

The credit rating agency, DBRS Ratings Limited, has upgraded Bankinter's issuer rating and senior unsecured long-term debt and deposits rating from 'BBB' (high) to 'A' (low). Furthermore, DBRS has confirmed the bank's short-term debt and deposit rating of 'R-1' (low). Overall, the agency has given these ratings a 'stable' outlook.

DBRS attributes these improved ratings to an 'ongoing positive trend' seen in Bankinter's financial performance. The agency considers that the bank is 'well positioned to take advantage of the opportunities offered by the improving economic environment' in order to 'strengthen' its position in Spain 'whilst maintaining its solid financial performance and good asset quality among Spanish banks'.

According to DBRS, the rating assigned to Bankinter also reflects its robust generation of recurring earnings, which affords the bank 'good capacity to generate capital'. The agency added that Bankinter is 'well placed to face upcoming regulatory requirements'.

This rating upgrade reflects Bankinter's sound capital adequacy and high asset quality in addition to its ability to generate recurring earnings, owing to increased lending and retail funds.

Last February, Standard & Poor's raised Bankinter's long-term credit grade from 'BBB-' to 'BBB' and its short-term credit grade from 'A-3' to 'A-2', maintaining a positive outlook on both ratings.