On May 7, 2012, Mr. Rodrigo Rato, the president of Bankia S.A. (Bankia) and its parent company, Banco Financiero y de Ahorros S.A. (BFA), announced his intention to resign. On May 9, 2012, BFA announced it intends to request a conversion into share capital of the preferred shares held by the state through the Fondo de Restructuración Bancaria, which could result in the state owning a controlling stake in BFA and, therefore, indirectly in Bankia. In our view, there is increased uncertainty about Bankia and BFA's financial strength and their future direction. According to a Bank of Spain communication on May 9, 2012, Bankia and BFA are working on a restructuring plan to strengthen their capital positions. Our 'BBB-/A-3' long-
