...- Banco de Sabadell has accumulated a large buffer of additional loss-absorbing capacity, which will provide significant protection to senior creditors in a resolution scenario. - Sabadell has also made good progress in the implementation of its restructuring plan, although its efficiency and profitability still lag that of some peers and are not yet commensurate with the magnitude and depth of its franchise. - We raised our long- and short-term issuer credit ratings on Sabadell to '###/A-2' from '###-/A-3' and affirmed our ratings on the bank's hybrid debt instruments. - The stable outlook balances our expectation that Sabadell will continue to deliver on its strategic plan and gradually enhance its franchise and profitability, with the challenging, highly uncertain operating environment ahead adding risks to loan performance, given the bank's higher exposure to small and midsize enterprises....
