Moody's Ratings (Moody's) has ratified the rating of Kutxabank, S.A.'s senior unsecured debt at "A3", while changing its outlook from "stable" to "negative". The issuer's outlook has also been adjusted, moving from "stable" to "stable (m)".
As detailed by the "rating" agency itself, the rest of the notes and assessments assigned to Kutxabank, including the stable outlook for long-term deposit ratings, remain unchanged and are not affected by this decision.
The confirmation of Kutxabank's "rating", now accompanied by a "negative" outlook, comes after the entity announced on May 28, 2026 its intention to prematurely redeem non-preferred senior bonds for an amount of 500 million euros, originally issued on June 15, 2023.
The early cancellation of these securities reduces the "stock" of loss-absorbing instruments available to offer protection to senior unsecured debt holders, increasing the risk of a possible downgrade. This reduction in buffers could place the protection level below thresholds considered sustainable and adequate to support Moody's current assumptions about the severity of losses associated with this instrument.
Kutxabank's rating could be downgraded if volumes of subordinated debt and senior unsecured debt are not maintained, sufficiently and stably, in the bank's liability structure to support the current assessment of loss severity for this asset class.
"Given the negative outlook, there is no upward pressure on Kutxabank's senior unsecured debt rating," it concluded.