BBVA Bid for Sabadell: More Pros than Cons from a Credit Perspective
Banking OrganizationsSummary
Morningstar DBRS has released a commentary on the potential credit implications for BBVA and Sabadell if the bid succeeds. Key highlights include:
-- If the bid is successful, there will be positive implications for Sabadell’s credit ratings.
-- The implications for BBVA’s credit ratings are mixed, but overall, we view the transaction as having more pros than cons.
“In our view, the potential merger of both entities would have more pros than cons,” notes María Jesús Parra, Vice President, European Financial Institution Ratings at Morningstar DBRS. “Yet, the bid is still at a very early stage to predict a definitive outcome.”