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 challenges posed by the severe problems experienced by its U.K. subsidiary following the migration of its IT platform 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. But we anticipate that it
