Fitch Affirms Santander's Latin American Subsidiaries.

BARCELONA, Spain & LONDON -- Fitch Ratings has affirmed the debt and Issuer Default Ratings (IDRs) for Banco Santander Central Hispano's (Santander) Latin American subsidiaries following the recent upgrade of the Spanish parent bank's IDR to 'AA' from 'AA-'. For more information, see the May 12, 2006 press release ('Fitch Upgrades Santander to 'AA'; Outlook Stable'), available on the Fitch Ratings web site at www.fitchratings.com.

The Foreign Currency IDRs of the subsidiaries in Brazil and Mexico are constrained by the country ceiling. Local Currency IDRs, already higher than the sovereign local currency rating in Brazil and Mexico, as well as the ratings of the Chilean subsidiary, are underpinned by support, making downward rating movements unlikely absent parent deterioration. Upside potential for the Local Currency IDRs would be driven principally by further strengthening in the financial fundamentals embodied in the Individual ratings.

Fitch has affirmed the following ratings:

Banco Santander Chile

--Issuer Default Rating (IDR) 'A' (Outlook Stable);

--Short-term issuer 'F1';

--Local currency IDR 'A+' (Outlook Stable);

--Local currency short-term issuer 'F1';

--Individual 'B';

--Support '1'.

Banco Santander Brasil S.A.

--Issuer Default Rating (IDR) 'BB-' (Outlook Positive);

--Short-term issuer 'B';

--Local currency IDR 'BB+' (Outlook Positive);

--Local currency short-term issuer 'B';

--Individual 'C/D';

--Support '3'.

Banco do Estado de San Paulo S.A. (Banespa)

--Issuer Default Rating (IDR) 'BB-' (Outlook Positive);

--Short-term issuer 'B';

--Local currency IDR 'BB+' (Outlook Positive);

--Local currency short-term issuer 'B';

--Individual 'C';

--Support '3'.

Banco Santander Meridional 

--Issuer Default Rating (IDR) 'BB-' (Outlook Positive);

--Short-term issuer 'B';

--Local currency IDR 'BB+' (Outlook Positive);

--Local currency short-term issuer 'B';

--Individual 'D';

--Support '3'.

Banco Santander Serfin

--Issuer Default Rating (IDR) 'BBB+' (Outlook Stable);

--Short-term issuer 'F2';

--Local currency IDR 'A-' (Outlook Stable);

--Local currency short-term issuer 'F2';

--Individual 'C';

--Support '2'.

Banco de Venezuela

--Issuer Default Rating (IDR) 'B+' (Outlook Negative);

--Short-term issuer 'B';

--Local currency IDR 'B+' (Outlook Negative);

--Local currency short-term issuer 'B';

--Individual 'C/D';

--Support '5'.

Banco Rio de la Plata 

--Individual 'E';

--Support '5'.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.