Transaction Update: Fondo de Titulizacion de Activos Santander Hipotecario 2

Santander Hipotecario 2 is a Spanish RMBS transaction that closed in July 2006. It was originated and serviced by Banco Santander with the portfolio comprising mortgage first-lien floating assets with geographic diversification across Spain. The transaction indiscriminately uses the proceeds from the principal and interest on the loans to pay interest and principal on the notes. However, to protect the more senior notes, the priority of payments features a trigger based on the amount of loans that are more than 18 months past due. Under certain stress scenarios, this protects the more senior tranches. New Issue: Fondo de Titulizacion de Activos Santander Hipotecario 2, Aug. 3, 2006

... posting trigger Banco Santander S.A. as Bank account provider, GIC provider and transaction account provider ICR: A+/Stable/A-1 A N/A Banco Santander S.A. as swap counterparty RCR: ##-/A-1+ Dynamic Dynamic Note: In case of any unrated bank branch, we apply our bank branch criteria that consider the ratings on the parent company and the branch host sovereign. ICR--Issuer credit rating. RCR--Resolution counterparty rating. N/A--Not applicable....

Transaction Update Report