Good franchise and competitive position in the Argentine financial system Sound diversification of business activities relative to the industry Adequate funding profile supported by its good franchise Risks inherent in operating in a high-sovereign-risk country Weak risk adjusted capital (RAC) position (according to Standard&Poor's capital model). The negative outlook on the bank reflects the pressures of sovereign distress on financial institutions operating in Argentina. The 'CCC-' transfer and convertibility (T&C) assessment on Argentina limits our foreign currency rating on the bank, which would likely move in tandem with the T&C assessment. The local currency rating on Argentina also limits the local currency rating on the bank. We could revise the outlook on the bank to stable if the
