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S&P places 4 Argentine banks on CreditWatch negative

S&P Global Ratings on Sept. 3 placed the issuer credit ratings of four Argentine banks on CreditWatch with negative implications, following a similar action on Argentina's sovereign credit ratings.

The affected banks are Banco Patagonia SA, Banco de Galicia y Buenos Aires SA, Banco Hipotecario SA and Banco de la Provincia de Buenos Aires.

The action on Argentina's ratings was due to recent pressure on the peso, which S&P said threatens the government's efforts to stabilize the economy. The rating agency revised its economic growth projections for Argentina to a real GDP contraction of 0.5% in 2018 from the 2.9% growth seen in 2017.

The negative CreditWatch placement on the banks reflects risk tied to the sovereign's worsening creditworthiness due to potentially weakened implementation of the government's strategy to stabilize the economy, S&P said.

S&P maintains its banking industry risk assessment on Argentina at group 8, with a stable economic risk trend and negative industry risk trend, reflecting the perceived one-in-three chance of deterioration in the country's funding scenario and industry conditions.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.