We consider that Abanca is delivering on its strategic plan, resuming volume growth, and shifting to a more-profitable asset mix, which could ultimately enable it to turn its current net operating losses around. The positive momentum of the Spanish economy could result in a strengthening of Abanca's capitalization beyond our base-case forecasts. As a result, we are revising our outlook on Abanca to positive from stable. We are also affirming the long- and short-term counterparty credit ratings at 'B+/B'. The positive outlook reflects the possibility we could raise the ratings in the next 12-18 months if Abanca continues to deliver on specific strategic goals, namely strengthening its business and reversing its still-negative operating profitability, or if it improves its risk-adjusted
