Valuable commercial banking franchise in Spain, especially in the small and midsize enterprise (SME) segment led by a focused management team. Management's proven ability to successfully reduce legacy nonperforming assets (NPAs). Modest profitability. Reputational damage caused by TSB's IT migration, which further challenges Sabadell's expansion in the competitive U.K. market. Our stable outlook on Sabadell balances the additional challenges posed by the severe problems experienced following the IT platform migration of its U.K. subsidiary with the benefits stemming from the continued improvement of its domestic operations' financial profile. Over the next 18-24 months, we expect that Sabadell will focus on implementing the measures aimed at restoring its reputation and commercial strategy in the U.K. We anticipate that it will be
