Moody's lifts Santander rating following Spain upgrade

Banco Santander SA - Madrid-based lender - Notes rating agency Moody's Investors Service has upgraded its long-term deposit and senior debt ratings to A1 from A2.ù

It says it also upgrades the rating of the three covered bond programmes to Aaa from Aa1.

This follows the upgrade of Spain's government bond rating to A3/Stable from Baa1, as well as the macro profile for the country to Strong+ from Strong.

Moody's notes this lifted the constraining factor for Santander rating. Adds that Moody's reaffirms its baa1 baseline credit assessment.

And says this reflects "its assessment of the bank's operating environment and broad diversification, combined with a strong track record of low earnings volatility and improved capital levels, as well as its diversified funding structure and ample liquidity buffers."