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Moody's assigns a Baa3.ar debt rating to Banco de Servicios y Transacciones S.A.

July 10, 2014



-- Moody“s Latin America Agente de

Calificaci×£n de Riesgo assigned a Caa1 global local-currency debt rating

to Banco de Servicios y Transacciones S.A. (BST)'s eight expected

issuance of Ar$150 million, which will be due in 21 months, under the

Ar$ 500 million multicurrency MTN Program. At the same time, Moody's

assigned Baa3.ar national scale local currency debt rating to the

expected issuance. The outlook for all ratings is stable.

The following ratings were assigned to BST's expected issuance:

Eight Issuance up to ARS 150 million expected debt issuance:

Caa1 Global Local Currency Debt Rating, with stable outlook

Baa3.ar Argentina National Scale Local Currency Debt Rating, with stable

outlook

RATINGS RATIONALE

Moody's explained that the local currency senior unsecured debt rating

derives from BST's Caa1 global local currency deposit rating. Moody's

also noted that seniority was taken into consideration in the assignment

of the debt ratings.

BST's caa1 baseline credit assessment reflects the entity's business

model, which is highly dependent on the domestic macroeconomic and

financial environment, its small franchise, wholesale funding structure

and limited profitability. The rating is however supported by the bank's

highly granular loan book and adequate asset quality. BST's business is

composed of a wholesale operation, including trading activities,

investment banking services, corporate finance, and also factoring

activities and leasing to small businesses; and the consumer finance

operation, through personal loans and credit cards. BST also provides

fiduciary services and engages in loan securitization.

Banco de Servicios y Transacciones is headquartered in Buenos Aires, with

assets of Ar$2,574 million and equity of Ar$ 181 million as of March,

2014.


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Source: EMBIN (Emerging Markets Business Information News)


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