OVERVIEW Today's rating actions on Bankia S.A.'s mortgage covered bonds follow our analysis on Bankia's December 2011 mortgage loan book data and current outstanding covered bonds. Under our covered bonds criteria, we continue to view Bankia's mortgage covered bonds' asset-liability mismatch (ALMM) as "low." However, we are lowering the notching differential between Bankia's mortgage covered bond ratings and long-term rating to four notches from our maximum of seven, because we believe Bankia's overcollateralization level is no longer commensurate with the maximum number of notches allowed under our criteria. We are therefore lowering our ratings on these mortgage covered bonds to 'A-' from 'AA-' and keeping them on CreditWatch negative. The negative CreditWatch mirrors that on Bankia and reflects our view
