... environment remains a relevant driver and constraint of Banco BBVA Argentina`s (BBVA Argentina) Viability Rating (VR). A reduction in regulatory risk, a correction of macroeconomic imbalances and economic recovery will take time to materialize. On Dec. 23, 2019 Fitch upgraded Argentina's sovereign rating to 'CC' from `RD' following the conclusion of the government's unilateral extension of repayment of short-term dollar-denominated treasury bills (Letes) issued under local law on Dec. 19. However, conditions underlying the `CC' rating are likely to continue to adversely impact BBVA Argentina's financial performance through more market volatility, further declining loan portfolios (in real terms), rising non-performing loans, higher funding costs and rising administrative expenses due to rising inflation. Support Based Ratings: The IDRs of BBVA Argentina are driven by the likelihood of the bank receiving support from its parent, Banco...
