Bulletin: Banco de Sabadell Ratings Unaffected By The Announced Sale Of Foreclosed Real Estate Assets

MADRID (S&P Global Ratings) July 19, 2018--S&P Global Ratings said today that its ratings on Spain-based Banco de Sabadell S.A. (BBB/Stable/A-2) are not immediately affected by the bank's intention to dispose the bulk of its foreclosed real estate assets. However, we see this transaction as positive because it accelerates the ongoing derisking of the bank's balance sheet. Today Sabadell agreed to transfer two portfolios of about €9.1 billion in Spanish real estate assets (gross value) to a newly created company in which it will have a 20% stake (the remaining 80% is owned by Cerberus Capital Management L.P.) in a transaction similar to the one agreed this year by BBVA and Caixabank. The largest portfolio comprised about €5.7 billion assets,

...MADRID (S&P Global Ratings) July 19, 2018--S&P Global Ratings said today that its ratings on Spain-based Banco de Sabadell S.A. (###/Stable/A-2) are not immediately affected by the bank's intention to dispose the bulk of its foreclosed real estate assets. However, we see this transaction as positive because it accelerates the ongoing derisking of the bank's balance sheet. Today Sabadell agreed to transfer two portfolios of about 9.1 billion in Spanish real estate assets (gross value) to a newly created company in which it will have a 20% stake (the remaining 80% is owned by Cerberus Capital Management L.P.) in a transaction similar to the one agreed this year by BBVA and Caixabank. The largest portfolio comprised about 5.7 billion assets, primarily finished properties. The other portfolio contained around 3.4 billion assets, inherited from CAM and covered by an asset protection scheme under which the Spanish Deposit Guarantee Fund would assume 80% of losses. We understand that the sale...

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