The credit rating agency Morningstar DBRS has issued this Friday a new report on BBVA’s takeover bid (OPA) for Banco Sabadell in which it considers that it has “more pros than cons” from the point of view of the credit profile.

“As of today, the offer is still in a very early phase to predict a definitive result, but if successful, we believe that the transaction has a net positive effect for the two entities from a credit perspective,” analysts at the signature.

The operation will have a positive impact on Sabadell’s long-term credit ratings, since they are positioned two notches below BBVA’s rating. DBRS explains that the rating of the bank led by Carlos Torres reflects its solid franchise with international diversification and the ability to generate solid and recurring profits.

“If the acquisition goes ahead, we consider that Sabadell will be part of a larger and more diversified banking group, and that its rating will benefit from the support of BBVA, even without full integration,” DBRS explains.

Thus, the Catalan bank will have more diversified and cheaper access to the capital markets, both for capital needs and for financing. In any case, DBRS also points to the risk that Sabadell has little room to make strategic decisions until this process is completed.

The risk rating agency has also warned that if both banks merge, this will increase the weight of operations in Spain in the results to 38% of the total, from the current 28%. In addition, it has also warned of execution risks, because the scale and diversification of both banks will make the merger process “much more complex” than other transactions executed by both.

“In the unlikely scenario that BBVA buys Sabadell but the merger between the two is not authorized by the Spanish Government, BBVA will not be able to realize a large part of its expected cost synergies, which will temporarily affect profits,” DBRS has been indicated.