Moody’s changes Banco Sabadell view

Moody's Investors Service said it affirmed the long-term deposit and long-term senior unsecured debt ratings of Banco Sabadell, SA at Baa2 and Baa3, respectively, and changed the outlook to stable from positive.

The agency also affirmed the bank's baseline credit assessment and adjusted baseline credit assessment at ba2, affirmed the bank's long-term counterparty risk assessment at Baa1(cr) and affirmed the bank's long-term counterparty risk rating at Baa1.

The bank's short-term ratings and assessments are unchanged.

Moody’s said the actions reflect an assessment of a slower than anticipated improvement in Banco Sabadell's credit profile, namely in terms of profitability and capital, following the extraordinary items recorded during the first six months of 2018 and prevailing downside risks to the performance of its subsidiary TSB Bank plc (Baa2 negative; baa2).

The affirmation of the bank's ratings also reflects the benefits of its de-risking strategy after it recently divested the bulk of its portfolio of foreclosed real estate assets and the declining trend in the stock of non-performing loans, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.