The cover pool backing the covered bonds is made of U.K. prime residential loans. The current rating incorporates one unused notch of uplift, meaning we would not automatically lower the ratings on the covered bonds if we lowered the ratings on Santander UK or the U.K. The issuer commits to a minimum level of assets in the cover pool that is commensurate with the current rating. The asset swap and two liability swaps are currently not supportive of the program's rating, hence they are not given credit to in our analysis. The cover pool displays a high concentration in London and the South-East, meaning that the transaction is exposed to price fluctuations in these areas. S&P Global Ratings' stable outlook
