Banco Bilbao Vizcaya Argentaria's Capital Allocation Is Exemplary

We believe Banco Bilbao Vizcaya Argentaria, or BBVA, allocates capital in an excellent way and award it an Exemplary rating. BBVA’s recent disposal of its US operations is a textbook example of excellent capital allocation. With this transaction, BBVA strengthened its balance sheet, sharpened its strategic focus, improved profitability, and returned excess capital to shareholders. In other smaller transactions, BBVA achieved similar results in the past. We maintain our narrow moat rating and our EUR 6.10/share fair value estimate.