Strong franchise and good competitive position in the Argentine financial system Diversified portfolio mix and adequate asset quality The relatively risky Argentine environment Weak capitalization Standard&Poor's Ratings Services bases its ratings on Argentina-based Banco de Galicia y Buenos Aires S.A. on its "adequate" business position, "weak" capital and earnings, "adequate" risk position, "average" funding, and "adequate" liquidity (as our criteria define these terms). Our bank criteria use our Banking Industry Country Risk Assessment (BICRA) economic and industry risk scores to determine a bank's anchor, the starting point in assigning an issuer credit rating. Our anchor for a commercial bank operating only in Argentina is 'bb-'. Our economic risk assessment reflects our view that increasing inflation and weaker fiscal
