We believe that Spanish Banco de Sabadell (Sabadell) is proactively reducing the riskiness of its balance sheet and gradually strengthening its solvency on the back of the supportive economic environment. We also consider that the bank is consolidating its market position in Spain and effectively diversifying its income sources geographically. As a result, we are revising our outlook on Sabadell to positive from stable. We are affirming the long- and short-term counterparty credit ratings at 'BB+/B'. The positive outlook reflects the possibility we could raise the ratings in the next 12-18 months if the bank continues to derisk its balance sheet and consolidate its market position, and economic risks in Spain continue to ease. On Nov. 2, 2016, S&P Global
