Outlook: Stable
Action date: 07/21/2020
Rating action: Downgrade


We change Banco Sabadell S.A.'s unsolicited credit rating (hereinafter, Sabadell) from A-/Negative to BBB+/Stable on the basis of its business model, which is more sensitive both to the SME segment and to the financing of activities directly linked to transport, accommodation and retail, since we consider that this exposure increases its sensitivity to the evolution of the complex macroeconomic scenario caused by COVID-19, not only because of the great impact that we foresee on the Spanish economy (A/ Under observation), but also in the countries where Sabadell is present (United Kingdom and Mexico), where we also expect to observe significant rises in non-performing loans that will lead to a higher volume of provisions that will negatively affect the current levels of profitability and solvency.


Date last rating: 07/21/2020
Date first rating: 07/24/2019