Transaction Update: Abanca Corporacion Bancaria S.A. (Mortgage Covered Bonds)

The ratings on the covered bonds benefit from one unused notch of jurisdictional support. The cover pool predominantly comprises highly seasoned residential loans with relatively low loan-to-value (LTV) ratios. The program benefits from an overcollateralization commitment, which is commensurate with the maximum potential notches of collateral-based uplift. This implies that the program can achieve the full notches of collateral-based uplift without any deductions. Relatively high concentration of mortgage loans in 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; BBB-/Stable/A-3) reflects the stable outlook on our long-term rating on Spain (unsolicited; A/Stable/A-1) as any rating action on the sovereign would

...+ The ratings on the covered bonds benefit from one unused notch of jurisdictional support. + The cover pool predominantly comprises highly seasoned residential loans with relatively low loan-to-value (LTV) ratios. + The program benefits from an overcollateralization commitment, which is commensurate with the maximum potential notches of collateral-based uplift. This implies that the program can achieve the full notches of collateral-based uplift without any deductions....

Transaction Update Report