TEXT-Fitch affirms Ayt Caja Granada Hipotecario I FTA

(The following statement was released by the rating agency)

July 11 - Fitch Ratings has affirmed Ayt Caja Granada Hipotecario I, Fondo
de Titulizacion de Activos's (Caja Granada I) notes, as follows:

Class A (ISIN ES0312212006) 'AA-sf'; placed on Rating Watch Negative;

Class B (ISIN ES0312212014) affirmed at 'BBBsf'; Outlook Negative;

Class C (ISIN ES0312212022) affirmed at 'BBsf'; Outlook Negative;

Class D (ISIN ES0312212030) affirmed at 'Bsf'; Outlook Negative.

Caja Granada I's pool comprises residential loans originated and serviced in
Spain by Caja General de Ahorros de Granada, part of Banco Mare Nostrum S.A.
('BB+'/Stable/'B').

The affirmation of the ratings reflects the sufficient level of credit
enhancement available to the rated notes. The notes are paying down sequentially
and the reserve fund is not expected to amortise due to breach of arrears
triggers, which is benefiting the rated notes.

The Negative Outlook assigned to the class B, C and D notes reflects Fitch's
concerns over the future performance of the pool. Fitch believes that the
performance of the underlying assets remains exposed to the stresses in the
Spanish macroeconomic environment. Loans in arrears by more than three months
increased to 4.9% of the current pool balance in March 2012, from 2.3% as of
December 2011. No period defaults (defined as loans in arrears by more than 18
months) have been reported at the past four interest payment dates (IPDs),
although the volume of loans in later-stage arrears is above levels seen in most
other Fitch-rated Spanish RMBS transactions.

The transaction replenished its reserve fund to the target level at the March
2011 IPD after incurring several draws between September 2009 and December 2010.
Fitch believes that the replenishment was driven by the high volume of
recoveries on defaulted loans (total amount reached EUR6.2m). The reported
recovery rate on defaulted loans is 100%, which is unusually high in comparison
to transactions with similar characteristics. In most cases these recoveries are
the result of the originator refinancing the defaulted loans leading to the full
repayment of the defaulted loans in the pool. Given the tightening in liquidity
on the market, Fitch believes that the practice of refinancing defaulted
borrowers may not be sustainable indefinitely. For this reason, Fitch has
applied its standard market value decline assumptions to derive the recovery
rates on future defaults.

Following the downgrades of the servicer, Banco Mare Nostrum S.A.
('BB+'/Stable/'B'), there is an increased risk of note payment interruption. In
the event of a default of the servicer the transaction's structure may not be
able to cover the resultant liquidity shortfalls. Although the reserve fund is
presently at the target amount, the agency believes that future reserve fund
draws are likely to occur, which means that in case of servicer disruption, the
reserve fund cannot be relied upon. For this reason, the agency has placed the
class A notes on Rating Watch Negative.

Additional information is available at www.fitchratings.com. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.

Sources of information - in addition to those mentioned in the applicable
criteria, the sources of information used to assess these ratings were Investor
Reports.

Applicable criteria, 'Global Structured Finance Rating Criteria', dated 06
August 2012, 'EMEA Residential Mortgage Loss Criteria' dated 07 June 2012; 'EMEA
Residential Mortgage Loss Criteria Addendum - Spain' dated 11 August 2011;
'Counterparty Criteria for Structured Finance Transactions and Counterparty
Criteria for Structured Finance Transactions: Derivative Addendum', dated 30 May
2012 are available at www.fitchratings.com.

Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
EMEA Residential Mortgage Loss Criteria
Counterparty Criteria for Structured Finance Transactions
Counterparty Criteria for Structured Finance Transactions: Derivative Addendum
EMEA Criteria Addendum - Spain - Mortgage Loss and Cash Flow Assumptions

(New York Ratings Team)