\nFitch Ratings has affirmed Banco Santander Argentina S.A.’s (Santander Argentina) Long-Term Foreign Currency and Local Currency Issuer Default Ratings (IDRs) at ‘B-?’ and ‘B’, respectively.<\/p>\n
\nFitch also affirmed Santander Argentina’s Short-Term Foreign Currency and Local Currency IDRs at ‘B?’?, Viability Rating (VR) at ‘b’ and Shareholder Support Rating (SSR) at ‘b-?’?. The Rating Outlook for the Long-Term IDRs is Stable.<\/p>\n
\nKey Rating Drivers<\/p>\n
\nIDRs and SSR: The bank’s Long-Term Foreign Currency IDR of ‘B-?’ is driven by its SSR of ‘b-?’ and capped by Argentina’s Country Ceiling of ‘B-?’?. The bank’s Long-Term Local Currency IDR of ‘B’ is capped at one notch above the Long-Term Foreign Currency IDR. Fitch believes ordinary shareholder support would be available if needed. The bank’s ultimate parent is highly rated, and the subsidiary is small relative to the support provider. The role in group is neutral in the SSR assessment.<\/p>\n
\nVR: Santander Argentina’s VR of ‘b’ is one notch above the operating environment (OE) score, reflecting Fitch’s view of the bank’s very strong credit profile and its implied VR of ‘b’. Fitch believes the bank’s domestic franchise, capitalization, good financial profile and manageable exposure to the sovereign, supports its VR above the OE.<\/p>\n
\nThe VR of ‘b’ and the ‘B’ Long-Term Local Currency IDR are now both above the sovereign because Fitch believes the bank would probably retain the capacity to service obligations in local currency after a sovereign default in that currency. Fitch also believes that the sovereign would probably not impose material restrictions, such as capital controls, on the bank’s ability to service those obligations.<\/p>\n
\nOperating Environment’s Upgraded: Fitch assessment of Argentine banks’ OE score is ‘b-?’\/stable. The OE directly affects banks’ standalone ratings and constrains their VRs. Argentina’s improved macroeconomics have resulted in an enhanced economic development that will improve Fitch’s core metrics to evaluate its score of the OE. Banks are still well capitalized and have been able to manage extreme interest rate volatility over the last few months.<\/p>\n
\nThe combination of higher funding costs and credit costs put significant pressure on the operating profitability of the banking system in 2025. We expect these trends to continue to weigh on banks’ earnings in the first half of 2026, with more constructive credit conditions toward the second half of the year and beyond.<\/p>\n
\nStrong Market Position: Santander Argentina’s business profile of ‘b’\/stable, is based on the bank’s four-year average total operating income (TOI) of USD5,027 million, which is above the limit (TOI: USD1,500 million) for the current OE score. Negative deviation factors originate from the bank’s focus on higher risk market, as it is constrained by the still volatile Argentinian OE. This suggests a persistently high vulnerability to deterioration in the business and economic environment.<\/p>\n
\nSantander Argentina is a universal commercial bank with a strong market position and a leading domestic franchise. It is the third largest bank by total loans and second by deposits in Argentina among private banks, with market shares of 9.0% and 8.9%, respectively, as of 1Q26.<\/p>\n
\nGood Risk Management: Santander Argentina’s risk profile is ‘b-\/stable’, reflecting the bank’s low risk appetite and underwriting standards, supported by its low-risk transactional business. The bank has strategically directed its investments toward secured credit lending to the private sector in the context of macroeconomic stabilization and asset quality worsened. As of June 2026, 12-month loan growth (yoy) was about 4.7%. The bank maintains other securities as earnings assets to manage liquidity, while its total exposure to public sector assets stood at about 21% of earning assets, among the smallest in the industry.<\/p>\n
\nAsset Quality Pressured: Santander Argentina’s asset quality score is ‘b-?’\/stable, reflecting the bank’s effective credit risk management, diversification by business sectors and moderate concentrations. Credit metrics worsened in 2025 because of deterioration in portfolio quality, as the financial burden on borrowers grew at a faster rate than real wages, against a backdrop of lower inflation.<\/p>\n
\nAs of 1Q26, Santander Argentina’s nonperforming loans (NPLs) stood at 10.7%, above the industry given its reliance on retail banking and pressured metrics relative to recent years (2022-2025 average: 3.4%). Loan loss reserve coverage remained adequate, at 88% of NPLs, and Fitch expects this measure to be improved despite recent pressure on cost of risk, while increased net charge-offs could support NPLs improvement in latter 2026.<\/p>\n
\nProfitability Affected by Lower NIM and High Cost of Risk: Santander Argentina’s earnings and profitability score is ‘b+’\/stable, reflecting the bank’s achievement of historical track record of solid profits although with decreasing trend since latter 2024. The combination of financial margin compression, increased interest rates and an increase in cost of risk, put significant pressure on the operating profitability of the banking system in 2025.<\/p>\n
\nFitch expects this trend continue in the first half of 2026, with more constructive credit conditions toward the second half of 2026 and beyond. As of 1Q26, the bank’s operating profit-to-risk-weighted assets (RWA) ratio stood at 0.7% (four-year average: 14.6%).<\/p>\n
\nGood Capitalization: Santander Argentina’s capitalization score is ‘b’\/stable, consistent with recent years, supported by strong internal capital generation, moderate recent RWA growth and prudent dividend payouts. The bank’s common equity Tier 1 (CET1) ratio stood at 26.8% as of 1Q26 and its tangible equity ratio was a solid 15.7%. Fitch believes the entity’s internal capital generation will allow it to preserve CET1-to-RWA ratios at historical levels within the rating horizon.<\/p>\n
\nReliance on Customer Deposits: Fitch upgraded Santander Argentina’s funding and liquidity score to ‘b’\/stable, in line with the implied score and supported by the bank’s overall business franchise, a relatively low loans to deposits ratio compared to its peers, coupled with prudent assets and liabilities management and high FX liquidity cushions. Its loans-to-deposits ratio stood at 80% as of 1Q26 (four-year average: 59%).<\/p>\n
\nAs with local peers, this ratio has recently increased in part due to recent customer demand for loans which has outpaced deposit growth. Its Basel III metric for liquidity is stable, with a liquidity coverage ratio (LCR) at a comfortable 167% and a net stable funding ratio (NSFR) of 154% as of 1Q26.<\/p>\n
\nRating Sensitivities<\/p>\n
\nFactors that Could, Individually or Collectively, Lead to Negative Rating Action\/Downgrade<\/p>\n
\nThe IDRs and SSR would be downgraded if Fitch perceived a material weakening in the parent ability or willingness to support these bank.<\/p>\n
\nThe IDRs are sensitive to changes in Country Ceiling, as the banks’ LT FC IDRs are almost always capped by it.<\/p>\n
\nThe VR is sensitive to changes in the sovereign rating or to a deterioration in the OE score beyond Fitch’s current expectations, particularly if this leads to a significant weakening of the bank’s financial profile.<\/p>\n
\nPolicy announcements that weaken the bank’s ability to service its obligations would be negative for its creditworthiness.<\/p>\n
\nFactors that Could, Individually or Collectively, Lead to Positive Rating Action\/Upgrade<\/p>\n
\nRating actions on the bank’s IDRs and SSR are sensitive to those of the sovereign and the Country Ceiling.<\/p>\n
\nThe VR would benefit from an upgrade of Argentina’s sovereign rating and an improvement in the OE score.<\/p>\n
\nVR ADJUSTMENTS<\/p>\n
\nThe operating environment score of ‘b-?’ is below the ‘bbb’ category implied score due to the following adjustment reason(s): macroeconomic stability (negative), and sovereign rating (negative).<\/p>\n
\nThe business profile score of ‘b’ is below the ‘bb’ category implied score due to the following adjustment reason(s): business model (negative).<\/p>\n
\nThe earnings & profitability score of ‘b+’ is below the ‘bb’ category implied score due to the following adjustment reason(s): historical and future metrics (negative).<\/p>\n
\nThe capitalization & leverage score of ‘b’ is below the ‘bb’ category implied score due to the following adjustment reason(s): leverage and risk-weight calculation (negative).<\/p>\n
\nREFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING<\/p>\n
\nThe principal sources of information used in the analysis are described in the Applicable Criteria.<\/p>\n
\nPublic Ratings with Credit Linkage to other ratings<\/p>\n
\nThe IDRs and SSR of Santander Argentina are linked to the ratings of its parent company, Banco Santander, S.A.<\/p>\n
\nESG Considerations<\/p>\n
\nSantander Argentina has an ESG Relevance Score of ‘4’ for Management Strategy due to the still high level of government intervention in the banking sector. This challenges the banks’ ability to define and execute their own strategies, which has a negative impact on the credit profile and is relevant to the rating in conjunction with other factors.<\/p>\n
\nThe highest level of ESG credit relevance is a score of ‘3’, unless otherwise disclosed in this section. A score of ‘3’ means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch’s ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch’s ESG Relevance Scores, visit<\/p>\n
https:\/\/www.fitchratings.com\/topics\/esg\/products#esg-relevance-scores.<\/p>\n
\nRATING ACTIONS<\/p>\n
\nEntity \/ Debt<\/p>\n
\nRating Type<\/p>\n
\nRating<\/p>\n
\nRating Action<\/p>\n
\nPrior<\/p>\n
Banco Santander Argentina S.A.<\/p>\n
\nLT IDR<\/p>\n
\nB-<\/p>\n
\nAffirmed<\/p>\n
\nB-<\/p>\n
\nST IDR<\/p>\n
\nB<\/p>\n
\nAffirmed<\/p>\n
\nB<\/p>\n
\nLC LT IDR<\/p>\n
\nB<\/p>\n
\nAffirmed<\/p>\n
\nB<\/p>\n
\nLC ST IDR<\/p>\n
\nB<\/p>\n
\nAffirmed<\/p>\n
\nB<\/p>\n
\nViability<\/p>\n
\nb<\/p>\n
\nAffirmed<\/p>\n
\nb<\/p>\n
\nShareholder Support<\/p>\n
\nb-<\/p>\n
\nAffirmed<\/p>\n
\nb-<\/p>\n
\nPage<\/p>\n
\nof 1<\/p>\n
\nVIEW ADDITIONAL RATING DETAILS<\/p>\n
\nAdditional information is available on www.fitchratings.com<\/p>\n
\nPARTICIPATION STATUS<\/p>\n
\nThe rated entity (and\/or its agents) or, in the case of structured finance, one or more of the transaction parties participated in the rating process except that the following issuer(s), if any, did not participate in the rating process, or provide additional information, beyond the issuer’s available public disclosure.<\/p>\n
\nAPPLICABLE CRITERIA<\/p>\n
\nBank Rating Criteria (pub. 09 May 2026) (including rating assumption sensitivity)<\/p>\n
\nADDITIONAL DISCLOSURES<\/p>\n
\nDodd-Frank Rating Information Disclosure Form<\/p>\n
\nSolicitation Status<\/p>\n
\nEndorsement Policy<\/p>\n
\nENDORSEMENT STATUS<\/p>\n
Banco Santander Argentina S.A. \tEU Endorsed, UK Endorsed<\/p>\n
\nUnsolicited Issuers<\/p>\n
Banco Santander Argentina S.A. (Unsolicited)<\/p>\n
With Rated Entity or Related Third Party Participation \tYes
\nWith Access to Internal Documents \tYes
\nWith Access to Management \tYes<\/p>\n
\nDISCLAIMER & DISCLOSURES<\/p>\n
\nAll Fitch Ratings (Fitch) credit ratings are subject to certain limitations and disclaimers. Please read these limitations and disclaimers by following this link: https:\/\/www.fitchratings.com\/understandingcreditratings. In addition, the following https:\/\/www.fitchratings.com\/rating-definitions-document details Fitch’s rating definitions for each rating s<\/p>\n
\nRead More<\/p>\n
\nSolicitation Status<\/p>\n
\nThe ratings above were solicited and assigned or maintained by Fitch at the request of the rated entity\/issuer or a related third party. Any exceptions follow below.<\/p>\n
Unsolicited IssuersENTITY\/SECURITY\tISIN\/CUSIP\tRATING TYPE\tSolicitation StatusBanco Santander Argentina S.A.\t–\tLocal Currency Long Term Issuer Default Rating\tUnsolicitedBanco Santander Argentina S.A.\t–\tLong Term Issuer Default Rating\tUnsolicitedBanco Santander Argentina S.A.\t–\tViability Rating\tUnsolicitedBanco Santander Argentina S.A.\t–\tShareholder Support Rating\tUnsolicitedBanco Santander Argentina S.A.\t–\tLocal Currency Short Term Issuer Default Rating\tUnsolicitedBanco Santander Argentina S.A.\t–\tShort Term Issuer Default Rating\tUnsolicited<\/p>\n
\nFitch’s solicitation status policy can be found at www.fitchratings.com\/ethics.<\/p>\n
\nEndorsement Policy<\/p>\n
\nFitch’s international credit ratings produced outside the EU or the UK, as the case may be, are endorsed for use by regulated entities within the EU or the UK, respectively, for regulatory purposes, pursuant to the terms of the EU Regulation or the UK Regulation, as the case may be. Fitch’s approach to endorsement in the EU and the UK can be found on Fitch’s Regulatory Affairs page on Fitch’s website. The endorsement status of international credit ratings is provided within the entity summary page for each rated entity and in the transaction detail pages for structured finance transactions on the Fitch website. These disclosures are updated on a daily basis.<\/p>\n","protected":false},"excerpt":{"rendered":"Fitch Ratings has affirmed Banco Santander Argentina S.A.’s (Santander Argentina) Long-Term Foreign Currency and Local Currency Issuer Default…\n","protected":false},"author":2,"featured_media":110,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[121],"tags":[144,147],"class_list":["post-70491","post","type-post","status-publish","format-standard","has-post-thumbnail","category-banco-santander","tag-banco-santander","tag-markets"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/posts\/70491","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/comments?post=70491"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/posts\/70491\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/media\/110"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/media?parent=70491"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/categories?post=70491"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/tags?post=70491"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}