Valuable retail franchise in Spain. Management's proven execution capabilities of successfully implementing strategic and integration plans. Likelihood of Sabadell receiving state assistance if needed, given its high systemic importance in Spain. Higher credit risk than peers. Modest capitalization, albeit improving. Still subdued operating profitability. The negative outlook reflects that we might lower the ratings on Sabadell by one notch by year-end 2015 if we consider that extraordinary government support is less predictable under the new EU legislative framework, and, as a result, we believe there is a greater likelihood that senior unsecured liabilities could incur losses if the bank were to fail. Conversely, we could revise the outlook to stable if we consider that potential extraordinary government support for Sabadell's
