Fitch Assigns L-T LC IDR to Uruguay's FUCAC; Revises Nat'l Rtg Outlook to Positive.

BUENOS AIRES, Argentina -- Fitch Ratings has assigned a long-term local currency issuer default rating (IDR) of 'B-' to Federacion Uruguaya de Cooperativas de Ahorro y Credito (FUCAC). At the same time, Fitch has revised the Rating Outlook on its national long-term rating to Positive from Stable and affirmed the following:

--Foreign currency long-term IDR at 'B-' (Stable Outlook);

--Support '5'.

National Ratings:

--Long-term at 'BB+(uy)' (Outlook to Positive).

The ratings assigned to FUCAC are based on its improved performance and development of its activities since its recent decision to operate under a limited license to avoid higher nominal capital requirements. The ratings also take into account its niche franchise and small position within the increasingly concentrated Uruguayan financial system, but also reflect its good liquidity position. It should be noted here that an international rating has been assigned to FUCEREP due to local requirements, but the institution does not issue debt or obtain credit internationally, nor does it expect to in the future.

The Outlook on FUCAC's foreign and local currency long-term IDR is Stable. The revision in Outlook on its National rating reflects the improvement on its performance which, if sustained, could lead to an upgrade of its national rating.

Established in Uruguay in 1972, FUCAC is a financial cooperative that focuses mainly on small and micro-businesses, as well as consumers. In 2002, FUCAC signed a contract with another Uruguayan credit cooperative, COFAC, whereby the latter transferred 70% of its assets and liabilities to COFAC. Recently, in the face of higher nominal capital requirements, FUCAC requested authorization from the Central Bank of Uruguay (BCU) to operate as a financial cooperative with restricted activities.

The credit research on FUCAC is available on the Fitch Ratings subscription web site, www.fitchresearch.com, or by contacting the Ratings Desk in London: [phone].

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, 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.