Available credit enhancement that well exceeds the credit enhancement required at the current rating level. Well-seasoned portfolio of mostly residential loans (84.5% of total reported portfolio balance). Although decreasing, there is still a relatively high percentage of restructured loans, which we consider to have a higher probability of default. The Spanish real estate market shows signs of overvaluation, in our view. S&P Global Ratings' negative outlook on its ratings on the mortgage covered bonds ("cédulas hipotecarias" or CHs) issued by Spain-based Banco Bilbao Vizcaya Argentaria S.A. (BBVA; A-/Stable/A-2) reflects the negative outlook on the long-term ratings on Spain (unsolicited: A/Negative/A-1). This means that, all else being equal, a negative rating action on the sovereign would result in a similar rating
