OVERVIEW We are assigning our 'BBB' rating to NCG Banco S.A.'s (Novagalicia) mortgage covered bonds and placing them on CreditWatch negative. The ratings incorporate the maximum possible uplift under our covered bond criteria, in line with Novagalicia's current overcollateralization levels. The negative CreditWatch reflects our view that the covered bonds could be negatively affected by the transfer of assets from the mortgage book to the asset management company and our current view of the issuer's creditworthiness. MADRID (Standard&Poor's) Nov. 8, 2012--Standard&Poor's Ratings Services today assigned its 'BBB' long-term credit rating to NCG Banco S.A.'s (Novagalicia) mortgage covered bonds ("cédulas hipotecarias"). At the same time, we placed the rating on CreditWatch with negative implications (see list below).
