S&P Global Ratings on Dec. 19 upgraded the long-term national scale issuer credit ratings of both Banco Sabadell SA Institucion De Banca Multiple and subsidiary Sabcapital SA De CV Sofom ER to "mxA+" from "mxA-."

The short-term ratings for both were also raised to "mxA-1" from "mxA-2." The rating outlook remains positive.

The upgrade for Banco Sabadell Mexico reflects strengthening of its business profile in light of efforts to diversify business. S&P noted that Banco Sabadell Mexico completed a restructuring on Dec. 13, which resulted in a 51% stake in SabCapital.

The rating agency forecasts Banco Sabadell Mexico will account for about 3.0% of total loans to companies in Mexico's market. The bank is also expected to report profits of almost 300 million Mexican pesos at the end of this year, while its risk-adjusted capital ratio should be over 12% over the next 12 to 18 months.

As of Dec. 19, US$1 was equivalent to 20.03 Mexican pesos.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.