On Nov. 29, 2013, Standard&Poor's revised the outlook on the long-term sovereign credit rating on Spain to stable from negative. Spanish banks continue to rebalance their funding profiles. They are reducing their reliance on funding from the ECB and foreign sources, increasing the weight of more stable domestic retail funding in the mix, and sharply reducing the cost of domestic deposits. We expect this trend to continue, particularly in the context of stabilizing sovereign creditworthiness. We now see a stable trend for industry risk in Spain. We continue to view the trend for economic risk as stable. We are revising to stable from negative the outlooks on four Spanish banking groups and three branches of European banks, and
