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Fitch downgrades several Argentine banks in wake of sovereign ratings cut

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Fitch downgrades several Argentine banks in wake of sovereign ratings cut

Fitch Ratings on Aug. 22 downgraded the ratings of a number of Argentine financial institutions following a review spurred by the rating agency's recent sovereign ratings downgrade.

Fitch reviewed the ratings of seven Argentine companies, along with two Uruguayan units. The ratings of these financial institutions, the rating agency said, are sensitive to any changes in the sovereign ratings of Argentina and "highly influenced" by the operating environment.

In the wake of the review, Fitch downgraded the long-term foreign currency issuer default ratings on both Banco Santander Río SA and BBVA Banco Francés SA to B- from B and the long-term local currency IDRs of the banks to B- from B+. Fitch also cut their viability ratings to "ccc" from "b" and affirmed their short-term foreign and local currency IDRs at B.

Additionally, Fitch downgraded the long-term foreign and local currency IDRs of Banco Macro SA, Banco Supervielle SA, Banco Hipotecario SA and Tarjeta Naranja SA to CCC from B. Those companies' short-term foreign and local currency IDRs were changed to C from B. Viability ratings were cut to "ccc" from "b" for all except Tarjeta Naranja.

Fitch also lowered its long-term foreign and local currency IDRs on the two Uruguayan units, Banco de la Nación Argentina - Sucursal Uruguay and Provincia Casa Financiera, to CCC from B.

Fitch placed the B long-term and short-term foreign and local currency IDRs of Banco de la Ciudad de Buenos Aires under negative watch, while the lender's viability rating was lowered to "ccc" from "b."