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DBRS upgrades Banco de Sabadell's ratings

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DBRS upgrades Banco de Sabadell's ratings

DBRS on June 4 upgraded Banco de Sabadell SA's long-term issuer, deposit and senior debt ratings to A(low).

The agency also upgraded the Spanish bank's long- and short-term critical obligation ratings to A(high)/R-1(middle) and senior non-preferred debt rating to BBB(high), and confirmed the bank's R-1(low) issuer, deposit and senior debt ratings. The trends on all the ratings are stable.

The bank's intrinsic assessment is now at A(low), while its support assessment remains at SA3.

The upgrades reflect an improvement in the bank's core revenues, the significant reduction in its nonperforming assets ratio, and the return of U.K.-based subsidiary TSB Banking Group PLC's first-quarter performance to more normalized levels after all complaints related to its IT migration were resolved.

The ratings also take into account the group's sound funding and liquidity positions as well as the resiliency of its franchises in Spain and the U.K. The agency expects the group's capital position to strengthen, helped by retained earnings and positive impact of already announced corporate transactions.