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TEXT-S&P takes rating actions on 116 tranches in 87 Spanish deals

(The following statement was released by the rating agency) OVERVIEW

-- On Oct. 10, 2012, we lowered our long- and short-term sovereign ratings on the Kingdom of Spain to 'BBB-/Negative/A-3' from 'BBB+/Negative/A-2'.

-- Under our nonsovereign ratings criteria, the highest rating we would assign to a structured finance transaction is six notches above the investment-grade rating on the country in which the securitized assets are located.

-- Consequently, we have lowered our ratings on 116 tranches in 87 Spanish securitizations.

MADRID (Standard & Poor's) Oct. 11, 2012--Standard & Poor's Ratings Services today took various credit rating actions on 116 tranches in 87 Spanish securitizations.

Specifically, we have:

-- Lowered our ratings on 63 tranches in 51 residential mortgage-backed securities (RMBS) transactions;

-- Lowered our ratings on 37 tranches in 23 small and midsize enterprise (SME) collateralized loan obligation (CLO) transactions;

-- Lowered and kept on CreditWatch negative our ratings on five tranches in three SME CLO transactions;

-- Lowered our ratings on nine tranches in eight asset-backed securities (ABS) transactions; and

-- Lowered our ratings on two tranches in two Spanish collateralized debt obligation (CDO) transactions.

For the full list of today's rating actions, see "List Of Spanish Structured Finance Rating Actions Following Sovereign Downgrade--Oct. 11, 2012."

Today's rating actions follow the lowering of our long-term sovereign rating on the Kingdom of Spain to 'BBB-' from 'BBB+' in light of Spain's deteriorating economic conditions (see "Spain Ratings Lowered To 'BBB-/A-3' On Mounting Economic And Political Risks; Outlook Negative," published on Oct. 10, 2012).

Following the sovereign downgrade, we have based our subsequent rating actions in Spanish securitizations on the application of our nonsovereign ratings criteria (see "Nonsovereign Ratings That Exceed EMU Sovereign Ratings: Methodology And Assumptions," published on June 14, 2011). Under our criteria, the highest rating we would assign to a structured finance transaction is six notches above the investment-grade rating on the country in which the securitized assets are located. Therefore, our criteria now cap our ratings on transactions with underlying assets in Spain at 'AA-'. Prior to our Oct. 10, 2012 downgrade of Spain, the application of our criteria capped these ratings at 'AA+'.

After today's rating actions, only two tranches in two SME CLO transactions (the class B notes in EDT FTPYME PASTOR 3, Fondo de Titulizacion de Activos and the class C notes in BBVA-5 FTPYME Fondo de Titulizacion de Activos), remain at a 'AAA' rating level, as these ratings benefit from the support of a financial guarantee issued by the European Investment Fund (AAA/Stable/A-1+).

STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an residential mortgage backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Rule applies to in-scope securities initially rated (including preliminary ratings) on or after Sept. 26, 2011.

If applicable, the Standard & Poor's 17g-7 Disclosure Reports included in this credit rating report are available at

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RELATED CRITERIA AND RESEARCH

-- List Of Spanish Structured Finance Rating Actions Following Sovereign Downgrade--Oct. 11, 2012, Oct. 11, 2012

-- Spain Ratings Lowered To 'BBB-/A-3' On Mounting Economic And Political Risks; Outlook Negative, Oct. 10, 2012

-- European Structured Finance Scenario and Sensitivity Analysis: The Effects of The Top Five Macroeconomic Factors, March 14, 2012

-- Global Structured Finance Scenario And Sensitivity Analysis: The Effects Of The Top Five Macroeconomic Factors, Nov. 4, 2011

-- Nonsovereign Ratings That Exceed EMU Sovereign Ratings: Methodology And Assumptions, June 14, 2011

-- Principles Of Credit Ratings, Feb. 16, 2011

(New York Ratings Team)

((e-mail: pam.niimi@thomsonreuters.com; Reuters Messaging: pam.niimi.reuters.com@reuters.net; Tel:1-646-223-6330;))