Sensible strategic plan. Large and resilient franchise in Galicia. Retail oriented funding profile. Challenge to turn around profitability and consolidate risk framework. Modest capitalization. High stock of deferred tax assets lowers quality of capital. Low geographic and business diversification. Standard&Poor's Ratings Services' stable outlook on Abanca Corporacion Bancaria S.A. (Abanca) reflects our expectation that the group will maintain a moderate capital position, with its risk-adjusted capital (RAC) ratio staying between 6.0% and 6.5% over the next 12-18 months. We also expect its high stock of deferred tax assets, at about 100% of total adjusted capital, to continue undermining the bank's quality of capital. Our outlook also takes into account the group's ongoing focus on turning around its weak
