Banco de Sabadell S.A. (Sabadell) is enhancing its profitability and efficiency faster than we previously anticipated. We also expect Sabadell will be able to preserve its solvency and asset quality over the coming quarters, despite a potential increase in nonperforming loans in the domestic loan book. We revised our outlook on Sabadell to positive from stable and affirmed our 'BBB/A-2' issuer credit ratings on the bank as well as all our issue ratings on its debt. The positive outlook reflects the possibility of an upgrade over the next 12-24 months if Sabadell continues closing its efficiency and profitability gap with peers, and achieving returns more commensurate with the magnitude and depth of its franchise. On April 21, 2023, S&P Global
