Banco Bilbao Vizcaya Argentaria - Ratings Downgraded To S&P BBB From A-

Ratings Downgraded To S&P BBB From A-

Standard & Poor’s cut its credit ratings to BBB for Banco Bilbao Vizcaya Argentaria SA, citing “potentially negative exposure to Spain.” Spain’s economy shrank 0.3 percent in the first quarter from the fourth quarter of 2011. Spain’s sovereign rating was cut on April 26 for the second time this year by S&P, which cited concern that the country will have to provide further fiscal support to banks as the economy contracts. Spain’s downgrade by two levels to BBB+ from A, with a negative outlook, has “direct negative rating implications” for BBVA. “The factors behind the downgrade of Spain could have potentially negative implications for our view of the economic risk and the industry risk affecting the Spanish banking industry,” S&P indicated. Prime Minister Mariano Rajoy is struggling to convince investors his government can narrow Spain’s budget deficit by 3.2 percentage points of gross domestic product this year as the economy shrinks and unemployment approaches 25 percent.