Company: BBVXF
Filing Date: 2025-03-21
Form Type: 6-K
Source: 0000842180-25-000016
Chunk: 81

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-03-21
Form: 6-K
Chunk 81
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     |             194 |     |     335 |
| B                        |     |                                       |     |     441 |     |             335 |     |     581 |
| B-                       |     |                                       |     |     785 |     |             581 |     |   1,061 |
| CCC+                     |     |                                       |     |   1,191 |     |           1,061 |     |   1,336 |
| CCC                      |     |                                       |     |   1,500 |     |           1,336 |     |   1,684 |
| CCC-                     |     |                                       |     |   1,890 |     |           1,684 |     |   2,121 |
| CC+                      |     |                                       |     |   2,381 |     |           2,121 |     |   2,673 |
| CC                       |     |                                       |     |   3,000 |     |           2,673 |     |   3,367 |
| CC-                      |     |                                       |     |   3,780 |     |           3,367 |     |   4,243 |

4.2.5.1.3. Use of internal estimates for purposes other than the calculation of regulatory capital requirements

The Group’s internal estimates are a critical component of management based on value creation, giving rise to criteria for assessing the risk-return trade-off.

These measures have a broad range of uses, from the adoption of strategic business decisions through to the individual admission of transactions.

Specifically, internal estimates are used in everyday business in support of credit risk management through their inclusion in admission and monitoring processes, as well as in the pricing of transactions.

The management use of performance metrics that consider expected loss, economic capital and risk-adjusted return enables the monitoring of portfolios and the assessment of non-performing positions, among others.

4.2.5.1.4. Process for managing and recognizing the effects of credit risk mitigation

Article 435 (1) d)

Mitigation is an iterative process whose purpose is to recognize the benefits of the existence of collateral and guarantees, ordering them from the highest to the lowest credit quality.

The Group uses risk mitigation techniques for exposure pertaining to the wholesale portfolio by replacing the debtor’s RW with that of the guarantor, in cases in which the latter is eligible and its RW is lower than the