The new Spanish insolvency legislation to be implemented in September promises to have a more creditor-friendly view, similar to other European jurisdictions, which should provide the legal certainties necessary for the Spanish securitization markets to grow.

Until now, the securitization of Spanish assets was traditionally hindered by insolvency legislation that allowed courts leading the bankruptcy proceedings to retroactively date the bankruptcy prior to the date the proceeding was commenced. This time lag between the retroaction date to the date of the actual bankruptcy proceeding (referred to as the "Retroaction Period" under Spanish law) has typically prevented the rating agencies from issuing a stand-alone triple-A rating to a Spanish securitization, unless transactions were adequately structured to circumvent the legislation.

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