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

TC’s ratings reflect its strong growth; maintenance of its sound
historical profitability, asset quality, and liquidity; and its
satisfactory capital base. They 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. In addition, the potentially volatile
operating environment in Argentina and the small size of the company
were also factored in the ratings.

The low Sovereign ratings add significant ratings compression to most
Argentine issuers. Upside rating potential for TC lies in a Sovereign
upgrade. Downside potential exists in significant reduction of its
capitalization or deterioration in the operating environment affecting
TC’s asset quality.

TC’s profitability remains sound and is based on strong revenue
generation and growth and healthy asset quality. Fitch expects TC’s
profitability to remain robust in the medium term.

TC’s lending has grown significantly in recent years. In 2010, loan
growth resumed after a sharp slowdown suffered in 2009 as a result of
lower demand and a self-imposed restriction following the economic
slowdown. Asset quality ratios have historically been very good
considering the bank’s activity and the segments served, based on
conservative credit limits, good scoring systems and close monitoring of
early delinquencies. However, non-performing loans (NPLs) have risen
since 2H’2011 due to the economy’s slowdown, accounting for a still low
4.15% of total loans at March 31, 2012, and were fully reserved.

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

TC’s capital base is adequate, with an equity/assets ratio of 19.22% at
March 31, 2012. Despite significant growth, strong internal capital
generation has allowed it to maintain a satisfactory capital base.

TC is a credit card issuer created in 1996 in the Cuyo region (provinces
of Mendoza, San Juan and San Luis) and is now the leading issuer in that
region. Since 1996, it has expanded into the west, northwest, and south
of Argentina. At March 31, 2012, TC had above 465,000 credit cards
issued and 45 branches and commercial offices.

TC 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. 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.

Fitch has affirmed the following ratings for TC:

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

–Short-term local currency IDR at ‘B’;

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

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

–Support rating at ‘5’;

–Unsubordinated fixed-rate notes national long-term rating at
‘AA-(arg)’; Stable Outlook;

–Short-term notes national short-term rating 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

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DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING
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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
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AND PROCEDURES ARE ALSO AVAILABLE FROM THE ‘CODE OF CONDUCT’ SECTION OF
THIS SITE.

SOURCE: Fitch Ratings

        
        Fitch Ratings 
        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 
        or 
        Media Relations: 
        Elizabeth Fogerty, +1-212-908-0526 
        Email: elizabeth.fogerty@fitchratings.com
        

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