"The relatively long period until the possible approval date (six to eight months) adds uncertainty and may present a distraction for both banks," the firm said.

BBVA's decision to launch a public takeover bid (OPA) on Banco Sabadell with a hostile nature represents an increase in the risks of its execution, in addition to being a "distraction" for both banks, as indicated by the agency. Fitch Ratings credit rating in a report published this Friday.

"The relatively long period until the possible approval date (six to eight months) adds uncertainty and may present a distraction for both banks," the firm said.

Fitch has explained that if the takeover bid is accepted by the shareholders, the possible implications for the ratings of both banks will be assessed.

A priori, the agency considers that BBVA would benefit from greater scale and domestic franchise, especially in the SME segment, from cost synergies of US$ 914 million and greater geographic exposure to developed countries.

Fitch would also take into consideration the risks linked to the integration in its rating, although it has highlighted that BBVA has a "solid" history of integrating banks in the past.

"However, this acquisition poses greater challenges due to its non-friendly nature and potential impacts on the most overlapping regions," Fitch said.

In the event that the takeover bid fails, the risk rating agency does not foresee negative implications for the credit profile of both entities, which will continue to benefit from a positive environment due to the interest rate cycle. In the case of BBVA, it will be supported by its subsidiary in Mexico, while Sabadell will take advantage of the improved performance of TSB (The Savings Bank).