Banco de Sabadell Additional Tier 1 Preferred Securities Rated 'B+'

MADRID (S&P Global Ratings) Nov. 15, 2017--S&P Global Ratings said today that it has assigned its 'B+' long-term issue rating to the perpetual additional Tier 1 (AT1) capital instrument issued by Banco de Sabadell S.A. (BBB-/Positive/A-3). We understand from the proposed AT1 notes' terms and conditions that the instrument will comply with the EU's latest capital requirements directive (CRD IV), which is the EU's implementation of Basel III. We also understand that the preferred securities will rank senior to ordinary shares, but will be subordinated to more senior debt, including Sabadell's Tier 2 debt. In accordance with our hybrid capital methodology, we are assigning our 'B+' rating to the AT1 notes, four notches below our 'bbb-' stand-alone credit profile for

...MADRID (S&P Global Ratings) Nov. 15, 2017--S&P Global Ratings said today that it has assigned its 'B+' long-term issue rating to the perpetual additional Tier 1 (AT1) capital instrument issued by Banco de Sabadell S.A. (###-/Positive/A-3). We understand from the proposed AT1 notes' terms and conditions that the instrument will comply with the EU's latest capital requirements directive (CRD IV), which is the EU's implementation of Basel III. We also understand that the preferred securities will rank senior to ordinary shares, but will be subordinated to more senior debt, including Sabadell's Tier 2 debt. In accordance with our hybrid capital methodology, we are assigning our 'B+' rating to the AT1 notes, four notches below our '###-' stand-alone credit profile for Sabadell. We calculate this four-notch difference as follows: + One notch to reflect subordination risk; + Two additional notches to take into account the risk of nonpayment at the full discretion of the issuer and the hybrid's...

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