(The following statement was released by the rating agency)

Nov 26 - Standard & Poor's Ratings Services said today that as of Dec. 10,

it may place on CreditWatch with negative implications the ratings on certain

covered bond programs if it believes they are unlikely to meet its criteria for

assessing counterparty risk by Jan. 11, 2013.

Standard & Poor's published its updated criteria for assessing counterparty

and supporting party risk in covered bonds (collectively 'counterparty risk')

on May 31, 2012 (see 'Covered Bonds Counterparty And Supporting Obligations

Methodology And Assumptions,' and 'Counterparty Risk Framework Methodology And

Assumptions'). On publishing the criteria, we had stated that on the effective

date, on July 12, 2012, we would likely place several covered bond ratings on

CreditWatch negative. We did not place on CreditWatch covered bond programs

that were not affected by the new criteria or those whose issuers had

submitted action plans to enable the covered bond programs to meet the updated

criteria by the transition date, Jan. 11, 2013.

We have been in regular contact with the issuers as we monitor their progress

in bringing the exposure to relevant counterparties in line with our criteria.

In our view, it is becoming less likely that some of the issuers will

implement the planned remedies to fully mitigate counterparty risk by Jan 11,

2013. This is because progress on implementing some of the action plans has

been slower than anticipated. Furthermore, given the current delays in

implementing certain action plans, we are also less likely to have completed

our review by the transition date if we only receive the final documentation

shortly before then. We might therefore place our issue ratings on several

covered bond programs on CreditWatch in December.

We might also place on CreditWatch our ratings on those programs for which we

need to update our rating opinion to comply with European regulations

(REGULATION (EC) No 1060/2009). For those programs we need to update our

opinion based on the current criteria and will incorporate any progress made

to implement the counterparty criteria as of the review date.

We will comment on the potential magnitude of possible rating changes if we

put any of the ratings on CreditWatch.

RELATED CRITERIA AND RESEARCH

Related criteria:

-- Covered bond Ratings Framework: Methodology And Assumptions, June 26,

2012

-- Assessing Asset-Liability Mismatch Risk In Covered Bonds: Revised

Methodology And Assumptions For Target Asset Spreads, April 24, 2012

-- Covered Bonds Counterparty And Supporting Obligations Methodology And

Assumptions, May 31, 2012

-- Counterparty Risk Framework Methodology And Assumptions, May 31, 2012

-- Nonsovereign Ratings That Exceed EMU Sovereign Ratings: Methodology

And Assumptions, June 14, 2011

-- Principles Of Credit Ratings, Feb. 16, 2011

-- Revised Methodology And Assumptions For Assessing Asset-Liability

Mismatch Risk In Covered Bonds, Dec. 16, 2009

-- General Criteria: Standard & Poor's To Explicitly Recognize Credit

Stability As An Important Rating Factor, Oct. 15, 2008

-- A Listing Of S&P's New Actions Aimed At Strengthening The Ratings

Process, Feb. 7, 2008

-- European Legal Criteria for Structured Finance Transactions, March 23,

2005

Related research:

-- Rating On Deutsche Pfandbriefbank's Public-Sector Covered Bonds Placed

On CreditWatch Negative, Nov. 7, 2012

-- Various Rating Actions Taken On Eight European Covered Bond Programs

Following Counterparty Criteria Update, July 12, 2012

Other research:

-- REGULATION (EC) No 1060/2009 OF THE EUROPEAN PARLIAMENT AND OF THE

COUNCIL, European Commission, Sept. 16, 2009

The report is available to subscribers of RatingsDirect on the Global Credit

Portal at www.globalcreditportal.com. If you are not a RatingsDirect

subscriber, you may purchase a copy of the report by calling (1) 212-438-7280

or sending an e-mail to research_request@standardandpoors.com. Ratings

information can also be found on Standard & Poor's public Web site by using

the Ratings search box located in the left column at www.standardandpoors.com.

(New York Ratings Team)

(e-mail: pam.niimi@thomsonreuters.com; Reuters Messaging: pam.niimi.reuters.com@reuters.net; Tel:1-646-223-6330;)

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