Summary: Banco de Galicia y Buenos Aires S.A.

Satisfactory franchise and competitive position in the Argentina's financial system; Adequately diversified business activities; and Adequate funding profile thanks to its good franchise. The relatively risky conditions for a bank operating in Argentina's current environment; and Weak capitalization. The stable outlook over the next 12-18 months on Banco Galicia mirrors the outlook on sovereign's local and a foreign currency rating, which in turn reflects the newly elected government's commitment to a fiscal and structural adjustment amid significant economic and political challenges. We expect the government to implement policies that gradually contain inflationary pressures and reduce its fiscal deficit, slowly strengthening the macroeconomic pillars of the economy. We could raise the ratings on the bank in the next 12-18 months if

...Weak capitalization. Outlook The stable outlook over the next 12-18 months on Banco Galicia mirrors the outlook on sovereign's local and a foreign currency rating, which in turn reflects the newly elected government's commitment to a fiscal and structural adjustment amid significant economic and political challenges. We expect the government to implement policies that gradually contain inflationary pressures and reduce its fiscal deficit, slowly strengthening the macroeconomic pillars of the economy....

Summary