Good competitive position in Argentina's financial system, which provides low-cost and diversified deposit base funding; and High liquidity levels in both local and foreign currency. Very challenging economic conditions in Argentina, with a contracting economy and high inflation, exacerbated by the impact of COVID-19; and Transactional system with very low access to credit and lack of long-term funding base. The stable outlook for the next 12 months on Banco Galicia mirrors that on Argentina, reflecting the balance between risks stemming from remaining economic challenges--high inflation, low growth, large structural fiscal imbalances, high financing needs, and ongoing pressure in the foreign exchange markets--and a favorable near-term amortization profile. We could lower the ratings on Banco Galicia in the next 12 months
