Sabadell Affirmed At 'BB+/B' After Announcement Of Preliminary Proposal To Acquire TSB Banking Group; Outlook Negative

Spanish bank Sabadell has presented a preliminary proposal to acquire TSB Banking Group PLC for £1.7 billion, and has stated that it intends to finance the deal on a neutral basis from a regulatory capital perspective. We believe that if the acquisition is finalized according to the disclosed terms, its impact on Sabadell's creditworthiness is likely to be limited. We are therefore affirming our 'BB+/B' long- and short-term ratings on Sabadell. The outlook remains negative, reflecting our view that potential extraordinary government support for European banks will likely decrease as EU resolution frameworks are put into place. MADRID (Standard&Poor's) March 19, 2015--Standard&Poor's Ratings Services said today that it affirmed its 'BB+/B' long- and short-term counterparty credit

...+ Spanish bank Sabadell has presented a preliminary proposal to acquire TSB Banking Group PLC for ú1.7 billion, and has stated that it intends to finance the deal on a neutral basis from a regulatory capital perspective. + We believe that if the acquisition is finalized according to the disclosed terms, its impact on Sabadell's creditworthiness is likely to be limited. + We are therefore affirming our '##+/B' long- and short-term ratings on Sabadell. + The outlook remains negative, reflecting our view that potential extraordinary government support for European banks will likely decrease as EU resolution frameworks are put into place. MADRID (Standard & Poor's) March 19, 2015--Standard & Poor's Ratings Services said today that it affirmed its '##+/B' long- and short-term counterparty credit ratings on Spain-based Banco de Sabadell S.A. The outlook remains negative. The affirmation follows the announcement of a preliminary proposal from Sabadell to acquire the entire share capital of TSB....

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