Bulletin: Ratings And Outlook On Sabadell Not Immediately Affected By Decision To Divest Florida Subsidiary

MADRID (S&P Global Ratings) March 1, 2017--S&P Global Ratings said today that its issuer credit ratings and outlook on Banco de Sabadell S.A. (Sabadell; BB+/Positive/B) are not immediately affected by the bank's decision to divest its Florida-based subsidiary Sabadell United Bank N.A. to IberiaBank Corporation. The deal is expected to be finalized in the second half of 2017, subject to the relevant regulatory approvals. Strategically, we believe the sale fits within the bank's recently disclosed plan to strengthen its domestic franchise and to focus abroad, primarily in the U.K., while building up a commercial banking platform in Mexico. Sabadell United's $5.8 billion of assets represented a minor portion (2.5%) of the group's balance sheet and its net profits contribution was

...MADRID (S&P Global Ratings) March 1, 2017--S&P Global Ratings said today that its issuer credit ratings and outlook on Banco de Sabadell S.A. (Sabadell; ##+/Positive/B) are not immediately affected by the bank's decision to divest its Florida-based subsidiary Sabadell United Bank N.A. to IberiaBank Corporation. The deal is expected to be finalized in the second half of 2017, subject to the relevant regulatory approvals. Strategically, we believe the sale fits within the bank's recently disclosed plan to strengthen its domestic franchise and to focus abroad, primarily in the U.K., while building up a commercial banking platform in Mexico. Sabadell United's $5.8 billion of assets represented a minor portion (2.5%) of the group's balance sheet and its net profits contribution was about 6% of the total as of Dec. 31, 2016. The consideration for the disposal is about $1 billion, of which at least $800 million will be paid in cash with the balance in buyers' shares, generating a net capital gain...

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