Banco Santader

Banco Santander S.A. (Spain)

Global Credit Research Credit Opinion 25 MAY 2009 Credit Opinion: Banco Santander S.A. (Spain)

Banco Santander S.A. (Spain) Santander, Spain

Ratings Category Outlook Bank Deposits Bank Financial Strength Issuer Rating Senior Unsecured -Dom Curr Subordinate -Dom Curr Abbey National North America LLC Outlook Bkd Commercial Paper Banco Santander S.A. (Brazil) Outlook Bank Deposits -Fgn Curr Bank Deposits -Dom Curr NSR Bank Deposits -Dom Curr Bank Financial Strength Moody's Rating Rating(s) Under Review *Aa1/P-1 *B *Aa1 *Aa1 *Aa2 Stable P-1 Stable Ba2/NP A2/P-1 Aaa.br/BR-1 C

* Placed under review for possible downgrade on May 19, 2009 Contacts Analyst Maria Cabanyes/Madrid Maria Jose Mori/Madrid Johannes Wassenberg/London Maria Vinuela/Madrid Key Indicators Banco Santander S.A. (Spain) Total assets (EUR billion) Total capital (EUR billion) Return on average assets Recurring earnings power [5] Net interest margin Cost/income ratio (%) Problem loans % gross loans Tier 1 ratio (%) [1][2]2008 1049.63 98.87 0.97 1.83 2.30 42.98 2.19 8.78 2007 912.91 93.75 1.10 1.63 1.98 47.02 1.06 7.71 2006 833.87 78.16 1.00 1.31 1.74 51.72 0.87 7.42 2005 809.11 72.70 0.92 1.11 1.66 56.83 0.98 7.88 2004 664.49 66.09 0.79 1.22 1.72 56.11 1.12 7.16 [3]Avg. [4]24.44 [4]18.83 0.95 1.42 1.88 50.93 1.24 7.79 Phone 34.91.310.14.54 44.20.7772.5454

[1] As of December 31. [2] Statement period in which the bank switched to Basel II accounting framework. [3] The average calculations are based on Basel I and Basel II data where applicable. [4] Compound annual growth rate. [5] Preprovision income % average assets.

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Banco Santander S.A. (Spain)

Opinion SUMMARY RATING RATIONALE Moody's assigns a bank financial strength rating (BFSR) of B to Banco Santander, S.A. (Santander) which translates to a Baseline Risk Assessment of...