Review by Standard & Poor's of ratings

MATERIAL FACT

Banco Santander, S.A. (the "Bank") hereby announces that following the recent downgrade of the Spanish sovereign debt rating by Standard & Poor's Ratings Services, the agency published on October 16, 2012 their revised ratings for the Bank, as detailed below:

§ Long-term counterparty credit rating: BBB from A- (negative outlook)

§ Subordinated: BBB- from BBB+

§ Hybrid instruments: BB from BBB-

Short term counterparty credit rating of A-2 is affirmed.

Boadilla del Monte (Madrid), October 16,2012