Good franchise and competitive position in Argentina's financial system Strong diversification of business activities relative to the industry Adequate funding profile supported by a good franchise The relatively risky economic and industry conditions in Argentina Weak capitalization The negative outlook on Banco de Galicia y Buenos Aires S.A. (Banco Galicia) reflects the outlook on the Republic of Argentina (foreign and local currency B/Negative/B). If we downgrade Argentina, we could lower the ratings on all Argentina-based financial institutions that we rate the same as the sovereign, including Banco Galicia. We rarely rate these entities above the long-term sovereign rating on Argentina because they are very likely to be affected by changes in the national economy. Also, all financial institutions operating in
