OVERVIEW The quality and composition of NCG Banco, S.A.'s (Novagalicia) mortgage book has improved since the transfer of assets to SAREB in December 2012. In addition, early redemptions and maturities have changed the maturity profile of Novagalicia's outstanding mortgage covered bonds. Consequently, we consider the level of overcollateralization consistent with a higher rating. We are therefore raising our ratings on Novagalicia's mortgage covered bonds to 'BBB+' from 'BBB' and removing them from CreditWatch negative. The negative outlook mirrors that on the issuer and reflects that, all other things remaining equal, any change in the issuer's creditworthiness or the overcollateralization levels would lead to a downgrade of the covered bonds. MADRID (Standard&Poor') March 27, 2013--Standard&Poor's Ratings Services
