Fitch Ratings on Oct. 17 upgraded Banco Santander Río SA's local currency long-term issuer default rating to B+ from B, while maintaining the outlook at stable.
In addition, the rating agency affirmed the bank's viability rating at "b."
"In light of an improved economic and regulatory policy framework and decreased risk of government intervention in private banks' operations, the probability of parent support has improved and is likely to remain in place given the strategic role of this subsidiary," Fitch said, referring to parent company Banco Santander SA.
However, Argentina's low sovereign ratings and its still volatile economic and operating environment constrain Santander Río's viability rating. Fitch also considered in its analysis the bank's risk appetite and financial metrics, which are in line with its current viability rating, even when considering the impact of inflation on the bank's performance.