Circular RUNOR 1 - 162. Financial Entity Rating

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
__________________________________________________________________ COMUNICACION " A " 2364 01/09/95 __________________________________________________________________ TO FINANCIAL ENTITIES:
Ref.: Circular
RUNOR 1 - 162.
Financial Entity Rating

We address you to inform you that this Institution has adopted the following resolution:

"- Establish that, effective September 1, 1996, all financial entities whose computable net worth does not exceed $ 50,000,000 must have at least one extended rating issued by one of the risk rating agencies registered in the Registry enabled by the National Securities Commission, and admitted by the Central Bank as established in point 2 of the resolution disseminated by Communication "A" 2269, or by the international agencies included in the list of point 6 of the aforementioned communication. When the computable net worth exceeds $ 50,000,000, at least two ratings will be required. The registered net worth as of the close of the second month prior to the submission deadline of the report will be considered. To this end, local evaluators must take into account the minimum guidelines contained in Annex I to that Communication and other aspects related to the presentation format of the reports in the fifth paragraph of point 3 of Communication "A" 2269. Both rating agencies and financial entities must comply with the requirements referred to in the seventh paragraph of point 3 and point 7 of Communication "A" 2269. Rating reports must be submitted at least quarterly and must be presented to the Superintendence of Financial Entities and Exchanges within 10 days of the conclusion of the respective quarterly period, which -if applicable- will rule on compliance with the aforementioned analysis guidelines within 15 days of their submission. In cases where two evaluations are required, if the ratings show discrepancies greater than one level, the Superintendence of Financial Entities and Exchanges may require that a rating from another company be provided.

Within five calendar days after the aforementioned Superintendence formulates its conclusions, the rating results must be displayed on boards placed in customer service areas, especially those where interest rates offered on deposits are informed. Likewise, such ratings will be included in any advertising related to the collection of public funds. The latest available ratings, with specification of their meaning, must appear in fixed deposit certificates and in the summaries of checking and savings accounts sent to clients. Before June 15, 1996, financial entities will inform, by note addressed to the Superintendence of Financial Entities and Exchanges, the rating agencies or international agencies chosen to conduct the evaluation, bearing in mind that what is established in the sixth paragraph of point 3 of Communication "A" 2269 must be observed. The first evaluation report must be submitted no later than July 10, 1996."

We point out that when reference is made to provisions contained in Communication "A" 2269, the modifications introduced to those rules by the resolution disseminated by Communication "A" 2363 must be taken into account, where applicable.

We salute you very attentively.
BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Alfredo A. Besio Miguel A. Kiguel
Manager of Standards for General Manager
Financial Entities Area of Economics and Finance