We consider that U.K.-based bank Santander UK PLC (SanUK) is less affected than its parent, Banco Santander S.A. (Santander), by the downgrade of the Kingdom of Spain (BBB+/Negative/A-2) on April 26, 2012. Therefore, while we lowered the counterparty credit ratings on Spanish bank Santander to 'A-/A-2' from 'A+/A-1', we are only lowering our long-term rating on SanUK to 'A' from 'A+' and affirming our 'A-1' short-term rating. We are lowering our issue ratings on SanUK's dated subordinated instruments to 'BBB' from 'A-', and our issue ratings on its hybrid instruments to 'BBB-' from 'BBB'. The stable outlook on the counterparty credit ratings reflects our view that SanUK's stand-alone credit profile is likely to remain resilient despite moderate earnings pressures in
