Fitch Ratings on May 22 revised the outlook of Banco de la Nación Argentina - Sucursal Uruguay's long-term foreign and local currency issuer default ratings to stable from positive.
The outlook revision reflects the same action on Banco de la Nación Argentina, which, in turn, is driven by the outlook revision on Argentina's sovereign rating.
Banco de la Nación Argentina's creditworthiness is intrinsically aligned with that of the sovereign, due to the existing explicit guarantee provided by the government. Support for Banco de la Nación Argentina stems from its systemic importance as the largest bank in Argentina, Fitch said.
Meanwhile, Banco de la Nación Argentina - Sucursal Uruguay is the smallest bank in Uruguay. It has volatile profitability, a fairly liquid balance sheet and adequate capitalization metrics, Fitch said.
The Uruguayan subsidiary is a fully integrated branch of Banco de la Nación Argentina, Fitch added.
