Fitch Ratings downgraded the issuer default ratings of Banco de la Ciudad de Buenos Aires following the downgrade of the city of Buenos Aires.
The ratings that were downgraded include the long- and short-term IDRs to CCC from B- and to C from B, respectively. The long- and short-term local currency IDRs of the bank were also lowered to CCC from B- and to C from B, respectively.
This is the second downgrade the lender faced in September. The bank, among other Argentine financial entities, was downgraded Sept. 10 following a sovereign ratings downgrade of Argentina.
The IDRs of Banco Ciudad are driven by support from its parent, the city of Buenos Aires. In Fitch's opinion, the city of Buenos Aires "demonstrates adequate capacity and propensity to provide extraordinary support to the bank, should it be needed."
However, Argentina's country ceiling constrains the IDRs of the lender's parent, the rating agency added.
Fitch also affirmed the bank's viability rating at "cc."
