Fitch Assigns Local Currency IDR to Uruguay's Nuevo Banco Comercial; Affirms Other Ratings.

BUENOS AIRES, Argentina -- Fitch Ratings has assigned a long-term local currency issuer default rating (IDR) of 'BB-' to Nuevo Banco Comercial (NBC). At the same time, Fitch affirms the other ratings as follows:

-- Foreign currency long-term IDR at 'B+';

-- Support '4'.

National Ratings:

-- Long-term at 'AA-(uy)'.

The ratings assigned to NBC reflect its strong national franchise and good performance in light of its unique characteristics, as it was formed through the purchase of selected assets and liabilities of three banks that were liquidated during the last banking crisis. The ratings also consider the bank's good liquidity and capital levels.

NBC is currently owned by the Uruguayan state, although it has reached an agreement to sell it to a group of international investors headed by the investment fund Advent International; this is still dependent on regulatory approval.

The Outlook on NBC's foreign and local currency long-term IDR and National ratings is Stable. The Outlook for its ratings will mainly depend on the new shareholder's ability to succeed on the bank's growth strategy, which aims at recovering the leading position historically held by Banco Comercial. NBC's international ratings are in line with those of the sovereign so these would have to go up for NBC's ratings to move likewise.

NBC was formed with selected assets and liabilities of Banco de Montevideo, Banco La Caja Obrera and Banco Comercial, that were liquidated during the 2002 crisis. It is the second-largest private sector bank in the system in terms of assets, with a market share of 16%. The bank offers universal banking services and operates from a network of 48 branches with a staff of roughly 850 employees. The bank also operates through a wholly owned subsidiary, Banco Comercial Uruguai in Brazil.

Credit research on NBC 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.