Bulletin: Banco de Galicia y Buenos Aires S.A. Ratings Unaffected By Parent's Offering Of Shares Worth $632.5 Mil.

BUENOS AIRES (S&P Global Ratings) Oct. 2, 2017--S&P Global Ratings said today that its ratings and outlook on Banco de Galicia y Buenos Aires (Banco Galicia; B/Stable/--) are not affected by the parent's, Grupo Financiero Galicia S.A. (not rated), global primary offering of class B shares priced at $632.5 million. Grupo Financiero Galicia intends to use the proceeds from the offering to fund organic growth, increase the capital levels of its subsidiaries, purchase an additional minority interest in Tarjetas Regionales, and for general corporate purposes. The bank's stand-alone credit profile (SACP) is 'b+'. The sovereign ratings on Argentina continue to limit those on the bank because we rarely rate financial institutions higher than the sovereigns where they operate. We consider

...BUENOS AIRES (S&P Global Ratings) Oct. 2, 2017--S&P Global Ratings said today that its ratings and outlook on Banco de Galicia y Buenos Aires (Banco Galicia; B/Stable/--) are not affected by the parent's, Grupo Financiero Galicia S.A. (not rated), global primary offering of class B shares priced at $632.5 million. Grupo Financiero Galicia intends to use the proceeds from the offering to fund organic growth, increase the capital levels of its subsidiaries, purchase an additional minority interest in Tarjetas Regionales, and for general corporate purposes. The bank's stand-alone credit profile (SACP) is 'b+'. The sovereign ratings on Argentina continue to limit those on the bank because we rarely rate financial institutions higher than the sovereigns where they operate. We consider it unlikely that these institutions would be unaffected by developments in domestic economies. Although the potential capital infusion would be a positive development for the bank's capital, in our view, it is...

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