UCI ratings affirmed at BBB+ as Santander support underpins credit profile

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UCI BBB+ rating affirmed

Highlights

Fitch Ratings affirmed UCI S.A. and its subsidiary at BBB+ with Stable Outlooks, citing high probability of support from Banco Santander.
Banco Santander directly owns 50% of UCI, while BNP Paribas holds the other 50%, but only Santander is seen as a strong support factor for UCI's rating.
UCI faces ongoing profitability pressures, reporting net losses in 2025 and a pre-tax income to average assets ratio of negative 0.7% due to legacy portfolio issues and stiff competition.

Rating action and support assessment

As reported by Fitch Ratings, the agency has affirmed the Long-Term Issuer Default Ratings of UCI S.A. and its fully owned subsidiary Union de Creditos Inmobiliarios S.A. E.F.C. at BBB+ with Stable Outlooks. Fitch has also affirmed the companies' Shareholder Support Ratings at bbb+.

Fitch says the ratings reflect its expectation of a high probability of support from Banco Santander, which directly owns 50% of UCI's share capital. UCI supports Santander's core residential mortgage business through real estate agents and online platforms in Spain and, to a lesser extent, in Portugal.

The remaining 50% of UCI's share capital is held by BNP Paribas, including a 10% direct stake and a 40% holding through BNP Paribas Personal Finance. Fitch views potential extraordinary support from Santander as highly probable, but says the joint-venture structure limits UCI's strategic importance compared with Santander's fully owned core subsidiaries.

Profitability pressures and strategic implications

Fitch views UCI as less strategically important to BNP Paribas than it is to Santander, citing limited overlap in both geography and product coverage with BNP Paribas's broader strategy. That assessment leaves Santander as the more important support factor in the agency's credit view.

At the same time, Fitch says UCI continues to face pressure from the low profitability of its legacy portfolio and strong competition from much larger commercial banks. The company reports net losses in 2025, largely driven by losses on disposals of non-performing loans, with a pre-tax income to average assets ratio of negative 0.7%.

In our earlier article on Hainan Rubber’s proposed subordinated perpetual sustainable securities, we explained why Fitch rated the notes below the issuer level due to their subordinated ranking and coupon deferral features. We also outlined Fitch’s view of the group’s support framework and linkage to its parent, alongside the company’s high leverage profile and liquidity position as it refinances offshore debt via its Halcyon Agri unit.

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