Moody's publishes annual review of Uruguayan banking system

Emerging Markets Economy, May 5, 2003

In connection with its annual review of the Uruguayan banking system, Moody's confirmed the long and short term foreign currency deposit ratings of the following banks: ABN AMRO Bank N.V., Montevideo Branch; Banco A.C.A.C. S.A.; Banco de la Nacion Argentina (Uruguay); Banco Santander, S.A. (Uruguay); BankBoston, N.A. (Uruguay); and Lloyds TSB Bank plc (Uruguay). The outlook on the long term foreign currency deposit ratings remains negative in line with the outlook of the Uruguayan country ceiling for deposits. The outlook for the long term foreign currency deposit rating of Banco de la Nacion Argentina (Uruguay) remains with a stable outlook.

In a press release, Moody's also confirmed the National Scale Ratings (NSRs) of ABN AMRO Bank N.V., Montevideo Branch; Banco A.C.A.C. S.A.; Banco de la Nacion Argentina (Uruguay); Banco Santander, S.A. (Uruguay); BankBoston, N.A. (Uruguay); and Lloyds TSB Bank plc (Uruguay).

Moody's pointed out that the NSR is not globally comparable, and is intended primarily for domestic use. The NSR ranks the likelihood of credit loss on local currency obligations of issuers in a particular country relative to other local issuers. The NSR also incorporates external shareholder and institutional support. The NSR is not an opinion on absolute default risks and does not address systemic risk.

The rating agency assigned a new bank financial strength rating (BFSR) of E to Banco Santander, S.A. (Uruguay), a 100%-owned subsidiary of Santander Central Hispano of Spain. Moody's assigned an E BFSR to Banco A.C.A.C. S.A., a 91%-owned subsidiary of Credit Agricole SA of France.