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December 14, 2007 |
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BNP PARIBAS: Moody's Assigns First-Time Low-B and Junk Ratings Moody's Investors Service has assigned first-time ratings to BNP Paribas -- Argentine Branch. These are long- and short-term local-currency deposit ratings of Ba1 and Not Prime, and long- and short-term foreign-currency deposit ratings of Caa1 and Not Prime, respectively. Moody's also assigned the bank national scale ratings of Aaa.ar for local currency and Ba1.ar for foreign currency deposits. The local currency deposit ratings have a stable outlook, and those for foreign currency deposits have a positive one, in line with that of the sovereign ceiling for Argentina. Moody's noted that the ratings are constrained by Argentina's local- and foreign-currency country ceilings for bank deposits. As a branch of BNP Paribas of France (rated by Moody's at Aa1/ P-1), the bank is not assigned a bank financial strength rating. Moody's Ba1 for long-term local currency deposits of the branch in Argentina reflects the risk of the head office, but constrained by the country ceiling. The rating agency also points out that BNP Paribas' extensive track record of operations in the Argentine financial market, where it has had a presence since 1929, reinforces management's deep knowledge of the local environment, its product development and distribution capabilities. The Argentine branch also benefits from the head office's financial and management support, including its risk management and controls infrastructure. BNP Paribas (Argentina) had total assets of ARS1 billion (approximately US$326 million) and equity of ARS79.3 million (US$25.2 million). These ratings were assigned to BNP Paribas Argentine Branch: -- Global long-term local-currency deposit rating: Ba1, stable outlook -- Short-term local-currency deposit rating: Not Prime -- National scale rating for local currency deposits: Aaa.ar -- Global long-term foreign-currency deposit rating: Caa1, positive outlook -- Short-term foreign currency deposit rating: Not Prime -- National scale rating for foreign currency deposits: Ba1.ar BNP Paribas, one of Europe's largest banks, operates some 2,200 retail branches in France and has operations in about 85 other countries, including Argentina. |
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