...Strong Franchise and Expertise: BBVA Banco Frances (BBVA Frances) benefits from a stable and growing franchise, as the third largest private sector bank in terms of total assets. Additionally, the bank benefits from the ample expertise of its main shareholder: Spain's Banco Bilbao Vizcaya Argentaria (BBVA; rated A¡/Stable by Fitch). High Country Risk: Given the political risks of higher government intervention, like the recent interest rate cap on personal consumer loans, and the ample economic uncertainties in the country, Fitch believes BBVA Frances' ratings remain constrained. While the bank exhibits healthy asset quality, profitability and capitalization levels, the potential of heightened sovereign risk cannot be underestimated. The pending government decision on how to address the debt servicing of the holdouts, will likely exacerbate risks and challenges for Argentine banks. Solid Performance and Revenue Base: The bank's ability to increase net interest income and fee revenues has...
