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Fitch downgrades Argentine financial firms following sovereign action

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Fitch downgrades Argentine financial firms following sovereign action

Fitch Ratings on Sept. 10 downgraded several Argentine financial institutions and two of their Uruguayan branches following recent actions taken by the agency on the sovereign ratings of Argentina.

The rating agency downgraded, among others, the long-term issuer default ratings of Banco de la Ciudad de Buenos Aires to B- from B; Banco Supervielle SA, Banco Hipotecario SA and Tarjeta Naranja SA to CC from CCC; as well as Banco Santander Río SA and BBVA Banco Francés SA to CCC from B-.

The long-term issuer default ratings of Uruguay-based Banco de la Nación Argentina - Sucursal Uruguay and Provincia Casa Financiera were also downgraded to CC from CCC.

Although the institutions maintain strong company profiles, their ratings are highly influenced by the operating environment in Argentina, which is facing volatile conditions amid sluggish economic growth and fiscal pressures.

Meanwhile, Fitch affirmed Banco Macro SA's ratings, reflecting the bank's strong financial and business profile, especially seen in its strong capital adequacy ratios.

Fitch last lifted Argentina's long-term foreign- and local-currency issuer default ratings to CC from restricted default after the country serviced its short-term debt instruments.