S&P raises the long-term rating outlook of Cajamar and Banco de Crédito Social Cooperativo to positive

30 de Abril, 2024

The agency expects to be able to raise its long- and short-term ratings

Headquarters of BCC-Grupo Cooperativo Cajamar in Madrid.

The rating agency S&P has raised, from stable to positive, the outlook for the long-term rating of Banco de Crédito Social Cooperativo (BCC) and Cajamar, affirming the BB+ level. For this increase in the long-term rating outlook, S&P has taken into account “the return of more solid profits, ability to build up capital internally and to invest in their digital transformation.”

Furthermore, it points out that this improvement in the outlook anticipates an upward revision of the rating of BCC and Cajamar in the coming months, if the agency's perception of the risks of the Spanish banking industry improves and the profitability of the Cajamar Group profitability will not diverge significantly from that of higher rated peers, or if the improvement in its capitalization continues.

The rating agency also points out the good evolution “of the operating performance of Grupo Cooperativo Cajamar, as well as the strengthening of its capitalization and balance sheet cleanup.” And he details that “aided by the favorable interest rate dynamics, but also cost savings from previous restructuring, the Group's pre-provision income almost doubled in 2023 compared to 2022, with its cost-to-income ratio reaching 53% at end-2023 (vs. 65% average in the previous four years).”