Press Release

DBRS Morningstar Confirms Issuer Ratings of Santander Totta at “A” / R-1 (low), Stable trend

Banking Organizations
October 02, 2020

DBRS Ratings GmbH (DBRS Morningstar) confirmed the ratings of Banco Santander Totta SA (Totta or the Bank), following the confirmation of the ratings of its parent, Banco Santander SA (Santander or the Parent). DBRS Morningstar has confirmed Totta’s Long-Term Issuer Rating at “A”, and its Short-Term Issuer Rating at R-1 (low). The trend on all of the ratings remains Stable, in line with the trend on Santander’s Issuer Ratings. Totta’s support assessment remains SA1. DBRS Morningstar has also discontinued the ratings on Santander Totta London Branch, as the Bank has closed this branch. A full list of rating actions is included at the end of this press release.


The confirmation of the ratings follow DBRS Morningstar’s confirmation of Santander’s A (high) / R-1 (middle) Issuer Ratings, with a Stable trend. DBRS Morningstar maintains its SA1 support assessment for Totta, which implies strong and predictable support from the Parent. As a result, Totta’s ratings will generally move in tandem with Santander’s ratings. The SA1 designation considers Totta’s important role as a core component of Santander’s international franchise and DBRS Morningstar’s expectation that Santander has the willingness and ability to support Totta, if required.


An upgrade would likely be linked to an improvement in Santander’s Issuer Ratings.

A downgrade of Santander’s ratings would also likely have a negative impact on Totta’s ratings. Any indication of a reduction of support from the Parent could impact DBRS Morningstar’s support assessment, and potentially also have a negative impact on Totta’s ratings.

An upgrade of the Parent is unlikely in the near term, given the challenging economic outlook, and the current rating level of the Kingdom of Spain. The Parent’s ratings could be downgraded if there is a substantial deterioration in asset quality, potentially as a result of the economic fallout from COVID-19, or if capital levels reduce. A downgrade of Spain’s sovereign rating would also have negative rating implications.


Santander Totta SA is a commercial bank in Portugal owned by Santander that provides universal banking services to individuals, small- and medium-sized enterprises and large corporations. Following the integration of Banco Popular Portugal, DBRS Morningstar views the Bank’s franchise as having further solidified its already strong market position in Portugal. The COVID-19 economic shutdown has led to significant deterioration in Santander Totta´s operating environment, however the full impact of the COVID-19 crisis will likely only emerge in the coming quarters. DBRS Morningstar assumes that support from the Parent would be forthcoming for Totta in a timely manner, as the reputational consequences for Santander of any perceived lack of support would be substantial.


A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at:

All figures are in Euros unless otherwise noted.

The principal methodology is the Global Methodology for Rating Banks and Banking Organisations (8 June 2020). and the DBRS Morningstar Criteria: Guarantees and Other Forms of Support (22 January 2020)

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release:

The sources of information used for this rating include Company Documents, Santander and Santander Totta 2019 & H1 2020 Presentations, Santander and Santander Totta 2019 & H1 2020 Press Releases, Santander and Santander Totta 4Q 2019 & 2Q 2020 Report, Santander and Santander Totta 2019 Annual Accounts, European Banking Authority Risk Dashboard, Bank of Spain and S&P Global Market Intelligence. DBRS Morningstar considers the information available to it for the purposes of providing this rating to be of satisfactory quality.

DBRS Morningstar does not audit the information it receives in connection with the rating process, and it does not and cannot independently verify that information in every instance.

Generally, the conditions that lead to the assignment of a Negative or Positive trend are resolved within a 12-month period. DBRS Morningstar's outlooks and ratings are under regular surveillance.

For further information on DBRS Morningstar historical default rates published by the European Securities and Markets Authority (ESMA) in a central repository, see:

The sensitivity analysis of the relevant key rating assumptions can be found at:

Ratings assigned by DBRS Ratings GmbH are subject to EU and U.S. regulations only.

Lead Analyst: Pablo Manzano, Vice President - Global FIG
Rating Committee Chair: Ross Abercromby, Managing Director - Global FIG
Initial Rating Date: July 18, 2012
Last Rating Date: November 28, 2019

DBRS Ratings GmbH, Sucursal en España
Calle del Pinar, 5
28006 Madrid
Tel. +34 (91) 903 6500

DBRS Ratings GmbH
Neue Mainzer Straße 75
60311 Frankfurt am Main Deutschland
Tel. +49 (69) 8088 3500
Geschäftsführer: Detlef Scholz
Amtsgericht Frankfurt am Main, HRB 110259

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