Available credit enhancement that exceeds the target credit enhancement. Improved management of the covered bond program which is reflected in the improved overcollateralization. Overcollateralization has increased as a result of covered bonds' maturities and early redemptions during 2013. Prudent management of asset-liability maturity mismatch (ALMM) risk, which we now assess as 'low'. A decrease in the nonresidential portion of the portfolio (which would generally be of lower credit quality, in our view) after the asset transfer to Sociedad de Gestión de Activos Procedentes de la Reestructuración Bancaria (SAREB). Improved origination and more prudent underwriting policies. Credit risk that is higher than the average for Spanish covered bond issuers. This reflects the aggressive underwriting and servicing policies of the banks, which
