TEXT-Fitch takes rtg actions on Spanish covered bond programmes

(The following statement was released by the rating agency)

June 18 - Fitch Ratings has taken rating actions on the Cedulas Hipotecarias (Spanish legislative covered bonds, CH) issued by Caja Laboral Popular, Banco Espanol de Credito S.A. (Banesto), Banco Santander (Santander), Banco Mare Nostrum S.A. (BMN), Cajamar Caja Rural, Sociedad Cooperativa de Credito (Cajamar), Banco Guipuzcoano, Unnim Banc, S.A. (Unnim), as follows:

Caja Laboral Popular ('BBB'/Negative/'F3'), CH downgraded to 'A-' from 'AA-'/Rating Watch Negative (RWN), removed from RWN

Banesto ('BBB+'/Negative/'F2'), CH at 'A' and placed on RWN pending the receipt of complete and updated data set from the issuer

Santander ('BBB+'/Negative/'F2'), CH downgraded to 'A'/RWN from 'AA-'/RWN, maintained on RWN pending the receipt of complete and updated data set from the issuer

BMN ('BBB-'/RWN/'F3'), CH downgraded to 'A-'/RWN from 'AA-', placed on RWN to reflect the RWN on the issuer's Issuer Default Rating (IDR)

Cajamar ('BBB-'/RWN/'F3'), CH downgraded to 'A-'/RWN from 'AA-'/RWN, maintained on RWN to reflect the RWN on the issuer's IDR

Banco Guipuzcoano ('BBB'/ RWN/'F3'/WD), CH downgraded to 'A-'/RWN from 'AA-'/RWN, withdrawn to reflect the withdrawal of the issuer's IDR

Unnim ('BB+'/RWP/'B'), CH downgraded to 'BBB+'/RWN from 'A-'/RWN, maintained on RWN pending the receipt of complete and updated data set from the issuer

The rating actions follow the agency's downgrade of Spain to 'BBB'/Negative/'F2' from 'A'/Negative/'F1' on 7 June 2012 and the subsequent rating actions on some of the issuing institutions (see "Fitch Downgrades Spain to 'BBB'; Outlook Negative" dated 7 June 2012, "Fitch Downgrades Santander & BBVA to 'BBB+'/Negative Outlook on Sovereign Action" dated 11 June 2012, "Fitch Takes Rating Actions on Spanish Banks Following Sovereign Downgrade" dated 12th June 2012, available at www.fitchratings.com).

As an exception to its covered bonds rating methodology, Fitch has set the Discontinuity Factor (D-Factor) for all Spanish CH programmes to 70%, to reflect its view that the ability of market participants to raise liquidity in order to allow the refinancing of the cover pool of a potentially defaulted bank is significantly impaired.