Fitch lifts Sucursal Uruguay

Fitch Ratings said it upgraded Banco de la Nacion Argentina’s (Sucursal Uruguay) foreign-currency and local-currency long-term issuer default ratings to B from CCC.

The upgrades were driven by a similar upgrade on Argentina’s sovereign rating, Fitch said.

The ratings reflect the high likelihood of support from the Republic of Argentina, should it be required, the agency said.

The bank’s foreign-currency issuer default rating is above the country’s foreign-currency issuer default rating of RD (restricted default), which reflects the current default status of certain debt securities affected by a court ruling, Fitch said.

Although Argentina’s new government is taking steps in the right direction to reduce political and regulatory intervention into the banking system, the local environment in Argentina is still characterized by ample economic imbalances with the economic recovery likely to take some time to materialize, the agency said.

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