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Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Banco Bilbao Vizcaya Argentaria ParaguayGlobal Credit Research - 12 Feb 2021New York, February 12, 2021 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Banco Bilbao Vizcaya Argentaria Paraguay and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on 10 February 2021 in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.Key rating considerations are summarized below.Banco Bilbao Vizcaya Argentaria Paraguay's (BBVA Paraguay) long-term global local currency deposit rating of Ba1 derives from the bank's standalone baseline credit assessment (BCA) of ba2. The bank's BCA reflects its above-peers problem loan ratio, high capitalization levels, steady profitability metrics and lower reliance on market funds than its peers, with deposits accounting for almost 90% of its funding sources, which is also backed by sufficient levels of liquid asset holdings. As a result of its corporate and SME focused operation with concentration in the agricultural sector, BBVA's problem loan ratio has been consistently higher than the broader system over the last three years despite its sound risk management practices. On 22 January 2021, BBVA Spain completed its sale of BBVA Paraguay to Banco GNB Paraguay, a subsidiary of Banco GNB Sudameris S.A. (Ba2), which is a unit of Gilex S.A. BBVA Paraguay will be merged with Banco GNB Paraguay over a maximum period of six months. BBVA`s long-term deposit ratings of Ba1 incorporate one notch of uplift from the the bank's BCA of ba2, given a high probability of government support in case of stress, in light of BBVA Paraguay's deposit market share in the banking system.This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.The principal methodology used for this review was Banks Methodology published in November 2019. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.This announcement applies only to EU rated, UK rated, EU endorsed and UK endorsed ratings. Non EU rated, non UK rated, non EU endorsed and non UK endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history. Farooq Khan Asst Vice President - Analyst Financial Institutions Group Moody's America Latina Ltda. Avenida Nacoes Unidas, 12.551 16th Floor, Room 1601 Sao Paulo, SP 04578-903 Brazil JOURNALISTS: 0 800 891 2518 Client Service: 1 212 553 1653 M. Celina Vansetti-Hutchins MD - Banking Financial Institutions Group JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Releasing Office: Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 © 2021 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). 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