BUENOS AIRES, Argentina, Jul 02, 2012 (BUSINESS WIRE) —
Fitch Ratings has affirmed Tarjeta Naranja S.A.’s (TN) ratings as
detailed at the end of this release.

In addition, Fitch has also assigned a national short-term rating of
‘A1+(arg)’ to TN’s class XVIII series I short-term notes for up to ARS40
million and a national long-term rating of ‘AA(arg)’ to class XVIII
series II notes for up to ARS60 million. The maximum amount to be issued
under class XVIII is ARS200 million.

TN’s ratings reflect its strong growth; maintenance of its sound
historical profitability, asset quality, and liquidity; and its
satisfactory capital base. The ratings also reflect the benefits of
belonging to the Tarjetas Regionales Group (owned by Banco de Galicia y
Buenos Aires), which is the largest credit card issuer in Argentina and
has ample experience in the business. Additionally, the potentially
volatile operating environment in Argentina was also factored in the
ratings.

Despite TN’s stand-alone strength, the low sovereign ratings add
significant ratings compression to most Argentine issuers. Upside rating
potential for TN lies in a sovereign upgrade. Downside potential exists
in significant deterioration in the operating environment, affecting
TN’s asset quality and capitalization.

TN’s sound profitability is based on strong revenue generation and
growth, adequate cost efficiency and healthy asset quality. TN’s lending
has grown significantly in recent years. In 2010, loan growth resumed
after a sharp slowdown suffered in 2009 due to lower demand and a
self-imposed restriction following the economic slowdown. Asset quality
ratios have historically been very good considering its activity and the
segments served, based on conservative credit limits, good scoring
systems and close monitoring of early delinquencies. However,
nonperforming loans (NPLs) have slightly risen since the second half of
2011 (2H’11) due to the economy’s slowdown, accounting for a still low
3.79% of total loans at March 31, 2012, and were fully reserved.

TN’s liquidity is strong, supported by the very short-term nature of its
lending. Also, it has had access to capital market funds through bond
issuance, interbank lending, and loan securitizations, helping extend
funding maturity. Exposure to foreign currency risk is low.

TN’s capital base is ample, with an equity/assets ratio historically
above of 20% (23.03% at March 31, 2012). Despite significant growth,
strong internal capital generation has allowed it to maintain a
satisfactory capital base.

TN was established in 1985 in the Province of Cordoba. Since 1996, it
has expanded significantly and now operates in most of the country. At
March 31, 2012, Tarjetas Regionales (TN and Tarjetas Cuyanas S.A.) had
6.6 million credit cards and more than 2.5 million clients.

TN is 100% owned by Tarjetas Regionales S.A., which is 77% owned by
Banco de Galicia y Buenos Aires, the third largest private sector bank
in Argentina by deposits.

Fitch has affirmed the following ratings for TN:

–Long-term local and foreign currency Issuer Default Rating (IDR) at
‘B’; Stable Outlook;

–Short-term local and foreign currency IDRs at ‘B’;

–National long-term rating at ‘AA(arg)’; Stable Outlook;

–National short-term rating at ‘A1+(arg)’;

–Support rating at ‘5’;

–USD200 million unsubordinated fixed-rate bonds long-term local
currency rating at ‘B/RR4’ and National long-term rating at ‘AA(arg)’;

–National long-term rating on senior unsecured notes at ‘AA'(arg);
Stable Outlook;

–National short-term rating on senior unsecured notes at ‘A1+'(arg).

Additional information is available at ‘
www.fitchratings.com ‘.
The ratings above were solicited by, or on behalf of, the issuer, and
therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

–‘Global Financial Institutions Rating Criteria’ (Aug. 16, 2011).

Applicable Criteria and Related Research:

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=649171

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND
DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING
THIS LINK:
HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS .
IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE
AVAILABLE ON THE AGENCY’S PUBLIC WEBSITE ‘
WWW.FITCHRATINGS.COM ‘.
PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS
SITE AT ALL TIMES. FITCH’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS
OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES
AND PROCEDURES ARE ALSO AVAILABLE FROM THE ‘CODE OF CONDUCT’ SECTION OF
THIS SITE.

SOURCE: Fitch Ratings

        
        Fitch Ratings 
        Elizabeth Fogerty, +1-212-908-0526 
        Media Relations, New York 
        elizabeth.fogerty@fitchratings.com 
        or 
        Primary Analyst: 
        Santiago Gallo, +54-11-5235-8137 
        Director 
        Fitch Argentina Calificadora de Riesgo S.A. 
        Sarmiento 663 - piso 7 - C1041AAM 
        Buenos Aires, Argentina 
        or 
        Secondary Analyst: 
        Dario Logiodice, +54-11-5235-8136 
        Associate Director 
        or 
        Committee Chairperson: 
        Pedro El Khaouli, +58-212-286-3232 
        Senior Director
        

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