The stable outlook reflects our expectation that, over the next 18-24 months, Sabadell will preserve its improved profitability and efficiency, even if these deteriorate slightly due to lower interest rates. We also anticipate that Sabadell's asset quality will remain resilient, while its capitalization, as measured by our RAC ratio, will decline slightly toward 8.5% on the back of substantial shareholder distributions. Additionally, we assume Sabadell will remain eligible to benefit from one notch of ALAC uplift. This is because we forecast that Sabadell will maintain a buffer of subordinated bail-in-able instruments of slightly above 400 bps of S&P Global Ratings' RWAs over the next 18-24 months, that is, above the 300-bp threshold we require. We may consider a positive rating
