Santander: shares firmer after S&P rating upgrade
(CercleFinance.com) - Shares in Banco Santander have risen in early trading on Monday after S&P upgraded the Spanish bank's long-term and short-term credit ratings.
With the Spanish index IBEX 35 currently up 1%, the Santander share is keeping pace, rising 0.9% to 5.4 euros.
Standard and Poor's has upped Santander's rating by one notch to A from A-, with a stable outlook.
The rating agency has also raised its short-term rating from A-2 to A-1.
"S&P's decision confirms our positive long-term stance towards the Spanish banking sector, stemming from the gradual increase in business volumes and the improvement in credit risk - which will mean lower provisions - within a more upbeat business environment that will have a more positive impact on return on tangible equity (ROTE)," Bankinter analysts said.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
With the Spanish index IBEX 35 currently up 1%, the Santander share is keeping pace, rising 0.9% to 5.4 euros.
Standard and Poor's has upped Santander's rating by one notch to A from A-, with a stable outlook.
The rating agency has also raised its short-term rating from A-2 to A-1.
"S&P's decision confirms our positive long-term stance towards the Spanish banking sector, stemming from the gradual increase in business volumes and the improvement in credit risk - which will mean lower provisions - within a more upbeat business environment that will have a more positive impact on return on tangible equity (ROTE)," Bankinter analysts said.
Copyright (c) 2018 CercleFinance.com. All rights reserved.