S&PGR Affirms ‘B-‘ Ratings On Banco Patagonia, Otlk Still Stbl

Press Release: S&PGR Affirms ‘B-‘ Ratings On Banco Patagonia, Otlk Still Stbl

 
 
The following is a press release from Standard & Poor's: 
 
     -- The bank has continued to follow its growth strategy in the Argentine 
market, maintaining stable business and credit fundamentals. 
     -- Our ratings on Banco Patagonia continue to be limited by the ratings 
on the sovereign. 
     -- We are affirming our 'B-' foreign and local currency ratings on the 
bank. 
     -- The stable outlook reflects that on the Republic of Argentina. 
 
BUENOS AIRES (S&P Global Ratings) July 7, 2016--S&P Global Ratings affirmed 
its 'B-' local currency and 'B-' foreign currency on Banco Patagonia S.A. The 
outlook remains stable. 
 
Our ratings on Banco Patagonia reflects its adequate business position, 
moderate capital and earnings, adequate risk position, average funding, and 
adequate liquidity. The bank's stand-alone credit profile (SACP) is 'b+'. 
 
The local currency and foreign currency ratings on Argentina continue to limit 
the ratings on the bank. We rarely rate financial institutions higher than the 
sovereigns in which they operate because we consider it unlikely that these 
institutions would be unaffected by developments in domestic economies. 
 
The stable outlook on Banco Patagonia for the next 12-18 months mirrors the 
outlook on the sovereign local and foreign currency rating, which in turn 
reflects the newly elected government's improved economic policies. 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 lower the ratings on the bank in the next 12-18 months if an 
unexpected deterioration in economic policy and political stability reverses 
the recent increase in investor confidence in Argentina, leading to a 
sovereign downgrade. 
 
We could raise the ratings on Banco Patagonia in the next 12-18 months if we 
were to raise the sovereign local and foreign currency ratings because the 
bank's stand-alone credit profile is still above our credit ratings on it. 
 
RELATED CRITERIA AND RESEARCH 
 
Related Criteria 
     -- Ratings Above The Sovereign--Corporate And Government Ratings: 
Methodology And Assumptions, November 19, 2013 
     -- Group Rating Methodology, Nov. 19, 2013 
     -- Quantitative Metrics For Rating Banks Globally: Methodology And 
Assumptions, July 17, 2013 
     -- Revised Market Risk Charges For Banks In Our Risk-Adjusted Capital 
Framework, June 22, 2012 
     -- Banks: Rating Methodology And Assumptions, Nov. 9, 2011 
     -- Banking Industry Country Risk Assessment Methodology And Assumptions, 
Nov. 9, 2011 
     -- Bank Capital methodology And Assumptions, Dec. 6, 2010 
     -- Use Of CreditWatch And Outlooks, Sept. 14, 2009 
     -- Commercial Paper I: Banks, March 23, 2004 
 
Certain terms used in this report, particularly certain adjectives used to 
express our view on rating relevant factors, have specific meanings ascribed 
to them in our criteria, and should therefore be read in conjunction with such 
criteria. Please see Ratings Criteria at www.standardandpoors.com for further 
information. Complete ratings information is available to subscribers of 
RatingsDirect at www.globalcreditportal.com and at www.spcapitaliq.com. All 
ratings affected by this rating action can be found on the S&P Global Ratings 
public website at www.standardandpoors.com. Use the Ratings search box located 
in the left column. 
 
Primary Credit Analysts: Standard & Poor's, New York 
                         Maria M Cangueiro, Buenos Aires (54) 11 4891 2149; 
                         maria.cangueiro[a]spglobal.com 
Secondary Contact: Cynthia Cohen Freue, Buenos Aires 5411 48912161; 
                   cynthia.cohenfreue[a]spglobal.com 
 
 
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