Fitch Ratings on Nov. 12 revised the ratings outlook on the long-term issuer default ratings of several Argentine financial institutions and some related Uruguayan branches to negative from stable.
The outlook revision followed a similar action on Argentina, as Fitch warned about heightened uncertainties surrounding the country's prospects for further fiscal consolidation and economic recovery beyond 2019.
The affected financial institutions include Banco Santander Río SA, BBVA Banco Francés SA, Banco Macro SA, Banco Supervielle SA, Tarjeta Naranja SA, Banco de la Ciudad de Buenos Aires, Banco Hipotecario SA, Banco de la Nación Argentina - Sucursal Uruguay and Provincia Casa Financiera.
The entities are some of the largest private-sector financial institutions in Argentina, Fitch said. The issuer default ratings of Banco Santander Río, BBVA Banco Francés and Banco de la Ciudad de Buenos Aires are driven by parent support, while those of Banco Macro, Banco Hipotecario and Banco Supervielle are supported by their viability ratings. Meanwhile, Tarjeta Naranja's rating reflects its standalone intrinsic financial profile.
Although having adequate financial condition, the entities' ratings are directly influenced by Argentina's low sovereign rating, due to the operating environment's impact on their performance.