Moody's annual review of Uruguayan banking system

Emerging Markets Economy, May 3, 2004

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 (Caa1, Not Prime), Banco A.C.A.C. S.A. (Caa1, Not Prime), Banco de la Nacion Argentina (Uruguay) (Caa2, Not Prime), Banco Santander, S.A. (Uruguay) (Caa1, Not Prime), BankBoston, N.A. (Uruguay) (Caa1, Not Prime), and Lloyds TSB Bank plc (Uruguay) (Caa1, Not Prime).

The long term foreign currency deposit rating of Banco Surinvest S.A. was lowered to Caa2, from Caa1.

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 ratings of Banco Surinvest and Banco de la Nacion Argentina (Uruguay), which are below the country ceiling, remains stable.

Moody's also confirmed the National Scale Ratings (NSRs) for local currency deposits of the Uruguayan branches of ABN AMRO Bank N.V., Montevideo Branch (Aaa.uy), BankBoston, N.A. (Uruguay) (Aaa.uy), and Lloyds TSB Bank plc (Uruguay) (Aaa.uy).

Moody's upgraded the National Scale Ratings (NSRs) for local currency deposits of Banco Santander, S.A. (Uruguay), a 100%-owned subsidiary of Santander Central Hispano, to Aa1.uy from A1.uy, and of Banco A.C.A.C. S.A., a 98%-owned subsidiary of Credit Agricole SA, to Aa3.uy from A3.uy, primarily as a result of the increased financial support of their respective owners. Banco de la Nacion Argentina (Uruguay)'s local currency deposits were also upgraded to B1.uy from Caa1.uy, reflecting the same risk as its Argentine head office.