The rating agency Fitch Ratings has improved the rating of Banco Sabadell in the midst of a hostile takeover bid by BBVA. Its analysts have placed their solvency rating for the entity’s long-term obligations at ‘BBB+’ from the previous ‘BBB’, maintaining the ‘stable’ outlook.
The improvement has been “driven by the strengthening of the quality of assets, profitability and capitalization of Banco Sabadell, as well as by the better evaluation of the operating environment of Spanish banks”, as explained by the bank in a statement to the Commission. National Securities Market (CNMC).
The boost comes after BBVA has changed the conditions of the offer to neutralize Sabadell’s defensive capacity. The Basque group now subjects the success of the operation to achieving political control of the bank compared to the 50.01% of the capital that had been imposed originally.
That is, it excludes from the calculation of accession the Catalan’s treasury stock, which currently stands at just 1.4%, but which the Vallesan entity could increase if it reactivates the share buyback programs at its next shareholders meeting. In fact, its leadership opened the door to exceeding 2.9 billion euros in investor remuneration between 2024 and 2025 via dividends and buybacks.
The CEO of Sabadell has replicated the movement by exhibiting strength. “Sabadell is better than ever today and has not yet reached its highest point,” said César González-Bueno in a meeting held this Friday in Vigo with Galician businessmen.
The banker announced that the bank will once again deliver record profits. “In 2024 we are going to greatly exceed the profits of 2023. We continue to have a very strong level of solvency, our share has multiplied by 6.6 since 2020, our shareholder remuneration is unmatched, and the good profitability is sustainable looking forward. Everything makes Banco Sabadell today better than ever and it has not yet reached its highest point,” he claimed as reported. Europe Press.
The executive highlighted the key role of the entity as a service provider for companies and especially SMEs. “Being such a relevant bank for companies is not the result of chance. I think we are a different bank. It is not just a matter of offering a product. It is a matter of relationship, closeness, understanding and knowing well the needs of each company” , he insisted.
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