...MADRID (S&P Global Ratings) Oct. 6, 2017--S&P Global Ratings said today that its ratings and outlooks on all Spanish banks, including CaixaBank S.A. and Banco de Sabadell S.A., remain unchanged following the escalation of political risks and social unrest in Catalonia in the wake of the independence referendum held last Sunday. Given that tensions may heighten further if there is a unilateral declaration of independence by the regional government of Catalonia, attention has inevitably turned to Spanish banks, with a particular focus on banks with close links to Catalonia. The fact that our ratings and outlooks are unchanged reflects our base-case scenario that Catalonia will remain part of Spain and our view that the banks will be able to deal with the immediate challenges arising from this heightened political risk. Potential risks that we currently foresee are: + An erosion of confidence, particularly in Catalonia, in response to increased tensions, potentially leading to liquidity outflows;...
