S&P cuts Argentine banks

Standard & Poor's said it lowered to B- from B its global scale issuer credit ratings on Banco Hipotecario SA, Banco Patagonia SA, Banco de Galicia y Buenos Aires SA and Banco de la Provincia de Buenos Aires.

The outlook on the ratings remains negative.

The agency said the downgrade on the Republic of Argentina is based on the increasing risks the government will face on its debt management following the Second Circuit Court of Appeals of the United States' ruling ratifying the judgment of the New York district court granting summary judgment to plaintiffs on their claims for breach of the Equal Treatment Provision. This rule could potentially increase the liabilities of Argentina and the debt service of the government over the near term.

S&P said it rarely rates financial institutions above the foreign currency ratings on the countries where they operate because the agency considers it unlikely that these institutions would remain unaffected by developments in their domestic economy.

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