Moody's: Argentina's banks mostly unchanged

Moody's Investors Service said it said in a report that its currently negative credit-trend outlook for Argentina's banks should not damage most of their ratings.

In general, Moody's said it has a negative outlook for the direction of credit conditions in the Argentinean banking system.

According to vice president Andrea Manavella, an author of the report, "The current macroeconomic conditions, which are characterized by high inflation, rising interest rates, and a more difficult liquidity environment, do indeed have the potential to slow the loan growth pace of Argentine banks relative to previous years."

"Moreover," she said, "such an environment may expose the banks to higher credit risks and also pressure their profitability."

Moody's added that ratings for the Argentinean banks, as reflected by the average bank financial strength rating of D, compare poorly with the Latin American weighted-average of C-.

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