Moody’s lifts four Argentine financials

Moody's Investors Service said it upgraded the global foreign currency debt ratings of Banco Macro SA, Banco Supervielle SA, Banco de Galicia y Buenos Aires SA and Banco Hipotecario SA following the April 21 upgrade of the banks' deposit ratings by Moody's Latin America.

The agency upgraded Banco Macro’s subordinated debt rating to Caa3 (hyb) from Ca (hyb), Banco Supervielle’s subordinated debt rating to Caa1 from Caa2, Banco de Galicia y Buenos Aires’ subordinated debt rating to Caa1 from Caa2 and Banco Hipotecario’s senior unsecured debt rating to B3 from Caa1, with a stable outlook.

The action also follows Moody's April 15 decision to upgrade the government bond rating of Argentina to B3 from Caa1 and its foreign currency bond ceiling to B2 from Caa1, foreign currency deposit ceiling to Caa1 from Caa2 and local currency bond and deposit ceilings to Ba3 from B1.

The banks’ rating actions take into account the high underlying inter-linkages between the banks' standalone credit risk profiles and that of the sovereign.

The upgrades consider that the country's, and consequently the banking system's, susceptibility to event risk has declined with the government's access to global capital markets restored following its recent agreement with holdout creditors, Moody’s said.

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