Strong franchise and good competitive position in the Argentine financial system Diversified portfolio mix and adequate asset quality Relatively low-cost funding profile Operation amid the relatively high economic and political risks in Argentina Weak capitalization Weak operating efficiency Standard&Poor's Ratings Services' ratings on Banco de sGalicia y Buenos Aires S.A. mainly reflect the relatively high economic and political risks in Argentina. They also incorporate the bank's weak capitalization and operating efficiency. Its strong franchise and good competitive position in the Argentine financial system partially offset these risks. Banco Galicia's relatively low nonperforming loans (NPLs), diversified portfolio mix, and low-cost funding profile also support the ratings. The bank is exposed to the risks inherent to the Argentine economy, in
