TEXT-S&P raises Colaterales Global Empresas Banco Gallego I rating

Mon Nov 12, 2012 12:43pm EST

OVERVIEW
     -- Since our last review, the class A notes in AyT Colaterales Global 
Empresas' series Banco Gallego I have continued to amortize, increasing the 
available credit enhancement for all classes of notes.
     -- Based on this improving credit performance, we have raised our ratings 
on all classes of notes in the transaction. 
     -- We have also applied our nonsovereign ratings criteria, which cap the 
maximum achievable rating level in this transaction at 'AA- (sf)'. 
     -- Our upgrades of the class A and B notes reflect both improving 
performance and the application of our nonsovereign ratings criteria. We have 
also removed from CreditWatch negative our ratings on these notes.
     -- The transaction originally closed in May 2009, but we assigned our 
ratings in February 2011. AyT Colaterales Global Empresas' series Banco 
Gallego I is collateralized by loans granted to Spanish SMEs originated by 
Banco Gallego. 
  
LONDON (Standard & Poor's) Nov. 12, 2012--Standard & Poor's Ratings Services 
today raised its credit ratings on all classes of notes in AyT Colaterales 
Global Empresas, Fondo de Titulizacion de Activos series Banco Gallego I. At 
the same time, we removed our ratings on the class A and B notes from 
CreditWatch negative (see list below).

Today's rating actions follow our assessment of the transaction's performance 
since our previous full review of the underlying portfolio's credit quality 
and capital structure in February 2011 (see "Ratings Assigned In Spanish ABS 
Of SMEs Transaction AyT Colaterales Global Empresas' Series Banco Gallego I," 
published on Feb. 14, 2011). We have also applied our 2012 counterparty 
criteria, our criteria for rating European small and midsize enterprise (SME) 
securitizations, and our nonsovereign ratings criteria (see "Counterparty Risk 
Framework Methodology And Assumptions," published on May 31, 2012, 
"Methodology And Assumptions: Update To The CriteriaRELATED CRITERIA AND RESEARCH

     -- Counterparty Risk Framework Methodology And Assumptions, May 31, 2012
     -- European Structured Finance Scenario And Sensitivity Analysis: The 
Effects Of The Top Five Macroeconomic Factors, March 14, 2012
     -- Ratings On 19 Tranches In 11 Spanish SME Transactions Placed On 
CreditWatch Negative After Bank Rating Actions, Dec. 23, 2011
     -- Nonsovereign Ratings That Exceed EMU Sovereign Ratings: Methodology 
And Assumptions, June 14, 2011
     -- Global Structured Finance Scenario And Sensitivity Analysis: The 
Effects Of The Top Five Macroeconomic Factors, Nov. 4, 2011
     -- Principles Of Credit Ratings, Feb. 16, 2011
     -- Ratings Assigned In Spanish ABS Of SMEs Transaction AyT Colaterales 
Global Empresas' Series Banco Gallego I, Feb. 14, 2011
     -- Update To Global Methodologies And Assumptions For Corporate Cash Flow 
And Synthetic CDOs, Sept. 17, 2009 
     -- Methodology And Assumptions: Update To The Criteria For Rating 
European SME Securitizations, Jan. 6, 2009


RATINGS LIST

Class                       Rating
                To                      From

AyT Colaterales Global Empresas, Fondo de Titulizacion de Activos
EUR135 Million Asset-Backed Floating-Rate Notes Series Banco Gallego I

Ratings Raised And Removed From CreditWatch Negative

A               AA- (sf)               A+ (sf)/Watch Neg
B               AA- (sf)               A (sf)/Watch Neg

Ratings Raised

C               A (sf)                 BBB (sf)
D               BBB (sf)               BB- (sf)
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