Banco de Sabadell's new management team face a stiff challenge to transform its business model and adapt to a more demanding environment, characterized by low interest rates, increased consolidation, and technological disruption. We expect the bank will focus on domestic business, restructuring its retail operations, enhancing its efficiency, and accelerating digital transformation; but tangible benefits are likely to materialize only beyond our two-year outlook horizon. We remain mindful also of the difficult credit environment, with the full effect on asset quality and capitalization yet to emerge. We are affirming our 'BBB/A-2' long and short-term issuer credit ratings on Sabadell. The outlook remains negative, but now reflects the dual challenges the bank faces. On Feb. 26, 2021, S&P Global Ratings affirmed
