Moody’s lifts Santander (OTC: BCDRF) debt ratings after Spain upgrade
Rhea-AI Filing Summary
Banco Santander reports that Moody’s Investors Service has upgraded several of its key credit ratings following an improvement in Spain’s sovereign profile. After Spain’s government bond rating was raised from Baa1 to A3 with a stable outlook and its Macro Profile moved from Strong to Strong+, Moody’s lifted Santander’s long-term deposit and senior debt ratings from A2 to A1 (stable). The ratings of the Bank’s three covered bond programs (Public Sector, Mortgage and Export finance) were also increased to Aaa from Aa1.
Moody’s affirmed Santander’s baa1 Baseline Credit Assessment, citing the Bank’s operating environment, broad diversification, history of low earnings volatility, improved capital levels, diversified funding, and ample liquidity buffers. These actions signal an external view of stronger credit quality for Santander and its main funding instruments.
Positive
- Moody’s upgrades key ratings for Santander, lifting long-term deposit and senior debt ratings from A2 to A1 (stable) and covered bond programs to Aaa from Aa1.
Negative
- None.
Insights
Moody’s upgrades strengthen Santander’s external credit profile.
Moody’s raised Banco Santander’s long-term deposit and senior debt ratings from A2 to A1 (stable) and upgraded its covered bond programs to Aaa from Aa1. These actions follow the upgrade of Spain’s government bond rating to A3/Stable and a stronger Macro Profile, which had previously constrained Santander’s ratings.
The affirmation of the baa1 Baseline Credit Assessment highlights Moody’s view of Santander’s operating environment, broad diversification, low earnings volatility, improved capital, diversified funding, and ample liquidity. Higher issuer and covered bond ratings can support market confidence and may influence Santander’s access to wholesale funding over time, although actual effects will depend on market conditions around October 3, 2025.
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of October, 2025
Commission File Number: 001-12518
Banco Santander, S.A.
(Exact name of registrant as specified in its charter)
Ciudad Grupo Santander
28660 Boadilla del Monte (Madrid) Spain
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
| Form 20-F | X |
Form 40-F |
Banco Santander, S.A.
TABLE OF CONTENTS
Item |
|
| 1 | Report of Other Relevant Information dated October 3, 2025 |
Item 1
Banco Santander, S.A. (“Santander” or the “Bank”), in compliance with the Securities Market legislation, hereby communicates the following:
OTHER RELEVANT INFORMATION
The rating agency Moody’s Investors Service (“Moody’s”), following the upgrade of Spain’s government bond rating from Baa1 to A3/Stable, and the Macro Profile for Spain from Strong to Strong +, which lifted the constraining factor for Santander rating, has raised the Bank’s long-term deposit and senior debt ratings from A2 to A1 (stable), and the rating of the three covered bond programs (Public Sector, Mortgage and Export finance) to Aaa from Aa1.
Furthermore, Moody’s affirms Santander's baa1 Baseline Credit Assessment (BCA) reflecting 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.
Boadilla del Monte (Madrid), 3 October 2025
IMPORTANT INFORMATION
Not a securities offer
This document and the information it contains does not constitute an offer to sell nor the solicitation of an offer to buy any securities.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Banco Santander, S.A. | |||||
| Date: | October 3, 2025 | By: | /s/ Pedro de Mingo Kaminouchi | ||
| Name: | Pedro de Mingo Kaminouchi | ||||
| Title: | Head of Corporate Compliance | ||||