Moody's has assigned a bank financial strength rating (BFSR) of E+ (plus) to Argentine finance company Compañía Financiera Argentina (CFA), as well as a Aa2 local currency deposit rating and a Ba1 foreign currency deposit rating on a national scale, the agency said in a report.
The ratings derive from CFA's very modest franchise, which is reflected in the small size of its balance sheet and limited earnings diversification, as well as its small share in Argentina's loan and deposit markets at 0.6% and 0.1%, respectively.
CFA is a consumer finance operation of Argentina's Banco Galicia. It was acquired from US insurer AIG (NYSE: AIG) in mid-2009 and targets the low-income segments with predominantly unsecured personal loans and other consumer financing products.
CFA had 1.73bn pesos (US$430mn) in assets, 385mn pesos in deposits and a net worth of 769mn pesos as of December 2010.
To read the full report, in English, go to this link