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TEXT-S&P takes rtg actions in Spanish RMBS deal Caja Circulo I

(The following statement was released by the rating agency)

Oct 02 - OVERVIEW

-- On March 29, 2012, we lowered and kept on CreditWatch negative our rating on the class A notes to the same level as our then 'A-' long-term issuer credit rating (on Confederacion Espanola de Cajas de Ahorros' (CECA), the transaction account provider and swap counterparty at the time.

-- On Sept. 26, 2012, Banco Bilbao Vizcaya Argentaria S.A. (BBVA) replaced CECA as transaction account provider, while CECA remains the swap provider.

-- Today's rating actions follow BBVA's amendments to the transaction account agreements and CECA's amendments to the swap agreements, which now reflect our 2012 counterparty criteria. We have conducted our credit and cash flow analysis and applied our 2012 counterparty criteria. As the swap counterparty has not posted collateral, we have also conducted our cash flow analysis assuming that the transaction does not benefit from any support under the swap agreement.

-- Following our review, we have affirmed and removed from CreditWatch negative our 'A- (sf)' rating on the class A notes. At the same time, we have raised our rating on the class C notes and affirmed our ratings on the class B and D notes for performance reasons.

-- Caja Circulo I is a Spanish RMBS transaction that closed in March 2008, which we first rated in February 2011. Caja Circulo originated the underlying loans secured by Spanish mortgages.

Standard & Poor's Ratings Services today affirmed and removed from CreditWatch negative its credit rating on AyT Colaterales Global Hipotecario FTA Caja Circulo I's (Caja Circulo I) class A notes. At the same time, we have raised our rating on the class C notes and affirmed our ratings on the class B and D notes (see list below).

Today's rating actions follow the amendments to the transaction account and swap agreements, which now reflect our 2012 counterparty criteria (see "Counterparty Risk Framework Methodology And Assumptions," published on May 31, 2012).