Bulletin: Banco de Sabadell's Sale Of Its Servicer Solvia Only Slightly Enhances Its Capital

MADRID (S&P Global Ratings) Dec. 14, 2018--S&P Global Ratings said today that Banco de Sabadell S.A.'s sale of its fully owned real estate management unit Solvia Servicios Inmobiliarios, S.L.U. (Solvia) represents a step forward in the bank's strategy of focusing on its core banking business. In our view, the sale will have a limited positive impact on capital, commensurate with our current rating on the bank (BBB/Stable/A-2). Solvia acts as the servicer for Sabadell's own real estate assets, and for those sold in July 2018 (see "Banco de Sabadell Ratings Unaffected By The Announced Sale Of Foreclosed Real Estate Assets," July 19, 2018). Sabadell has announced that it will transfer 80% of Solvia's share capital to Lindorff. This will generate

...MADRID (S&P Global Ratings) Dec. 14, 2018--S&P Global Ratings said today that Banco de Sabadell S.A.'s sale of its fully owned real estate management unit Solvia Servicios Inmobiliarios, S.L.U. (Solvia) represents a step forward in the bank's strategy of focusing on its core banking business. In our view, the sale will have a limited positive impact on capital, commensurate with our current rating on the bank (###/Stable/A-2). Solvia acts as the servicer for Sabadell's own real estate assets, and for those sold in July 2018 (see "Banco de Sabadell Ratings Unaffected By The Announced Sale Of Foreclosed Real Estate Assets," July 19, 2018). Sabadell has announced that it will transfer 80% of Solvia's share capital to Lindorff. This will generate 138 million in capital gains for Sabadell and add 15 basis points to its fully loaded Common Equity Tier 1 capital. The transaction is expected to close in the second quarter of 2019. We estimate that it will benefit our risk-adjusted capital (RAC)...

Bulletin