S&P – Credit Ratings of Santander Holdings USA and Sovereign Bank Unchanged

October 15 00:00 2011

NEW YORK, October15 (RainbowNewsLine.com) – Analysts at S&P Rating Services have downgraded the parent company, Spain-based Banco Santander to AA-/Negative/A-1+. The analysts say the downgrade does not affect the rating of its subsidiaries Santander Holdings USA (NYSE: SOV) and Sovereign Bank.

Santander Holding USA (SHUSA) is placed two notches below its parent and according to group methodology criteria, it continues to possess three notches of raise considering the strategic importance to the parent company. SHUSA’s valuation was based on its loans diversity, business lines, credit quality, profitability, and strong market shares in stable markets, the analysts say. These factors are balanced out by the higher risk of subsidiary Santander Consumer USA (SCUSA) that is a subprime auto lender, the analysts add.