OVERVIEW We have applied our criteria for nonsovereign ratings that exceed EMU sovereign ratings to BBVA's public-sector covered bonds. Our criteria state that the maximum rating differential between the rating on the sovereign and that on the public-sector covered bonds is capped at a single notch. Our ratings on BBVA's public-sector covered bond program were previously two notches higher than our ratings on the Kingdom of Spain (AA/Negative/A-1+). We have therefore lowered our ratings on the covered bonds. The outlook is negative. MADRID (Standard&Poor's) May 13, 2011--Standard&Poor's Ratings Services today lowered its credit ratings on Banco Bilbao Vizcaya Argentaria S.A.'s (BBVA) public-sector covered bonds ("cédulas territoriales"; covered bonds backed by public-sector obligors) to 'AA+' from 'AAA'.
