Fitch Ratings said that increasing unemployment levels in Spain will result in a continued rise in borrower delinquencies and defaults in Spanish ABS and RMBS transactions.

With the unemployment rate reaching 17.4% in 1Q09 (13.9% 4Q08 and 8.6% 4Q07) and with little sign of improvement in the short term, the rating agency said it is not inconceivable to see levels surpassing the early 1990s recession and entering ranges where one in four or one in five are unemployed.

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