Research Update: Four Argentine Banks On CreditWatch Negative After Similar Action On The Sovereign

On Aug. 31, 2018, we placed Argentina on CreditWatch with negative implications. The Macri administration's commitment to stabilize the Argentine economy through difficult austerity measures should help sustain investor confidence and maintain the government's access to capital markets for funding its large fiscal deficits. However, recent pressure on the Argentine peso could jeopardize the effective implementation of economic adjustment measures, absent further steps to boost investor confidence We are therefore placing our global ratings on Banco Patagonia, Banco de Galicia y Buenos Aires, Banco Hipotecario, and Banco de la Provincia de Buenos Aires on CreditWatch negative, because the ratings on the four entities are strongly influenced by the sovereign rating. We are maintaining our Banking Industry Risk Assessment (BICRA) on

...+ On Aug. 31, 2018, we placed Argentina on CreditWatch with negative implications. + The Macri administration's commitment to stabilize the Argentine economy through difficult austerity measures should help sustain investor confidence and maintain the government's access to capital markets for funding its large fiscal deficits. + However, recent pressure on the Argentine peso could jeopardize the effective implementation of economic adjustment measures, absent further steps to boost investor confidence + We are therefore placing our global ratings on Banco Patagonia, Banco de Galicia y Buenos Aires, Banco Hipotecario, and Banco de la Provincia de Buenos Aires on CreditWatch negative, because the ratings on the four entities are strongly influenced by the sovereign rating. + We are maintaining our Banking Industry Risk Assessment (BICRA) on Argentina at group '8' with a stable economic risk trend and negative industry risk trend, reflecting our view that there is a one-in-three chance that...

Research Update