Bulletin: Banco de Galicia y Buenos Aires S.A.U.'s Planned Acquisition Of HSBC Bank Argentina S.A. Would Expand Credit Operations

BUENOS AIRES (S&P Global Ratings) April 10, 2024--S&P Global Ratings today said Grupo Financiero Galicia (not rated) and its subsidiary Banco de Galicia y Buenos Aires S.A.U.'s (Banco Galicia; CCC/Stable/--) recently announced acquisition of HSBC Bank Argentina S.A. and its subsidiaries does not immediately affect our ratings on Banco Galicia. This is because the sovereign credit ratings on Argentina (CCC/Stable/C) constrain the long-term rating on Banco Galicia, as its stand-alone credit profile is at 'b+'. We rarely rate financial institutions higher than the sovereign where they operate, because we consider it unlikely that these institutions would remain unaffected by developments in domestic economies. The seller, HSBC Holdings PLC, will receive a combination of cash and stocks from Grupo Galicia (American

...April 10, 2024 BUENOS AIRES (S&P Global Ratings) April 10, 2024--S&P Global Ratings today said Grupo Financiero Galicia (not rated) and its subsidiary Banco de Galicia y Buenos Aires S.A.U.'s (Banco Galicia; ###/Stable/--) recently announced acquisition of HSBC Bank Argentina S.A. and its subsidiaries does not immediately affect our ratings on Banco Galicia. This is because the sovereign credit ratings on Argentina (###/Stable/C) constrain the long-term rating on Banco Galicia, as its stand-alone credit profile is at 'b+'. We rarely rate financial institutions higher than the sovereign where they operate, because we consider it unlikely that these institutions would remain unaffected by developments in domestic economies. The seller, HSBC Holdings PLC, will receive a combination of cash and stocks from Grupo Galicia (American Deposits Receipts). Upon the finalization of the transaction, which we expect to occur in the next 9¡12 months and subject to regulatory approvals, we would evaluate...

Bulletin