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Roman Catechism
Penance Is a Sacrament
That Penance is a Sacrament pastors can easily show from what follows. As Baptism is a Sacrament because it blots out all sins, and especially original sin, so for the same reason Penance, which takes away all the sins of thought and deed committed after Baptism, must be regarded as a true Sacrament in the proper sense of the word.
Moreover—and this is the principal reason—since what is exteriorly done, both by priest and penitent, signifies the inward effects that take place in the soul, who will venture to deny that Penance is invested with the nature of a proper and true Sacrament ? For a Sacrament is a sign of a sacred thing. Now the sinner who repents plainly expresses by his words and actions that he has turned his heart from sin; while from the words and actions of the priest we easily recognise the mercy of God exercised in the remission of sins. In any event, the words of our Saviour furnish a clear proof: I will give to thee the keys of the kingdom of heaven whatsoever thou shalt loose upon earth, shall be loosed also in heaven. The absolution announced in the words of the priest expresses the remission of sins which it accomplishes in the soul.