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Moody's lowers ratings of Argentine financial entities

Moody's on Sept. 4 lowered the ratings of several Argentine financial institutions following a similar action on the country's sovereign ratings.

The affected institutions are BNP Paribas (Argentina), Banco Comafi SA, Banco Hipotecario SA, Banco Itaú Argentina SA, Banco Macro SA, Banco Patagonia SA, GPAT Compañía Financiera SAU, Banco Piano SA, Banco Rioja SAU, Banco Santander Río SA, Banco Supervielle SA, Banco de Galicia y Buenos Aires SAU, Banco de Servicios Financieros SA, Banco de Valores SA, Banco de la Ciudad de Buenos Aires, Banco de la Provincia de Córdoba SA, Banco del Tucumán SA, HSBC Bank Argentina SA, Industrial & Commercial Bank of China (Argentina) SA, John Deere Credit Compañía Financiera SA, Mercado A Termino De Buenos Aires SA, PSA Finance Argentina Compañía Financiera SA, Rombo Compañía Financiera SA, Tarjeta Naranja SA, Toyota Compañía Financiera de Argentina SA and RCI Banque Sucursal Argentina.

At the same time, Moody's revised the outlooks on the ratings to under review for possible downgrade from negative previously.

Furthermore, Moody's changed its macro profile for the Argentine banking system to "Very weak -" from "Weak," reflecting the country's challenging operating environment for banks and uncertainty related to funding conditions.

The rating agency's downgrade of Argentina's ratings reflects "rising expectation of losses for investors as a consequence of mounting pressures on the government's finances." Argentina seeks to extend the maturities of some of its short-term government debt in hopes to stabilize a depreciating currency and volatile markets.