Outlook: Stable
Action date: 06/22/2022
Rating action: Affirmed


We affirm Banco Sabadell, S.A.'s 'BBB' rating with a 'Stable' outlook Banco Sabadell, S.A. is the parent of Spain's fourth largest banking group by total assets with a business model focused on commercial banking, corporate banking, private banking and asset management services. The rating is based on the bank's limited profitability, which, although it has evolved positively towards pre-pandemic levels, remains below its peers. Also, its high exposure to small and medium-sized companies, largely concentrated in the tourism sector, could affect Sabadell's credit quality, as this is one of the sectors most affected by the pandemic and, together with the end of the grace period on ICO-backed loans, and the upcoming ECB interest rate hike, a moderate increase in non-performing loans could be expected.


Date last rating: 06/22/2022
Date first rating: 07/24/2019