Current prudent underwriting and servicing standards compared to that of the savings banks that formed Abanca. Available credit enhancement exceeds the target credit enhancement to achieve an 'A+' rating. Weaker portfolio performance compared with the average for Spanish covered bond issuers that we rate, resulting in higher arrears and default levels specially in the non-residential loan book, although currently reducing. High concentration of assets in the cover pool from a single region (Galicia). S&P Global Ratings' stable outlook on its ratings on the mortgage covered bonds ("cedulas hipotecarias" or CHs) issued by Spain-based Abanca Corporacion Bancaria S.A. (Abanca; BB-/Positive/B) reflects the stable outlook on our long-term sovereign rating on Spain (BBB+/Stable/A-2).This means that, all else being equal, any rating action
