mismatch risk

This opens a maturity mismatch risk between bank liabilities and assets.

Accordingly, interest rate mismatch risk is limited.

Currency mismatch risk: Assets and liabilities on the balance sheets may be in different denominations.

The CreditWatch placements reflect concerns over a possible rise in interest rate mismatch risk and liquidity risk.

The agency believes that Aspis Pronia does not have clear management guidelines on, or quantification of, the mismatching risk between assets and liabilities.

Also considered in the company's ratings are IMPSA's geographic revenue and asset diversification, and its ability to generate funds in hard currency, reducing currency mismatch risk compared to its indebtedness.

On Oct. 16, 2008, Standard & Poor's had placed its ratings on the aforementioned tranches on CreditWatch with negative implications, citing concerns over a possible rise in interest rate mismatch risk and/or liquidity risk.

To hedge the potential mismatch risk derived from the different index reference rates on the asset and notes sides, or the risk derived from any amendment in the terms of the mortgage agreements, the 'Fondo' will enter into a swap agreement with Ibercaja.

However, we note that Millennium, similar to other providers of the FX denominated mortgages, is exposed to refinancing/maturity mismatch risks in connection with these activities, due to the fact that FX funding sources have become increasingly limited in Poland.

The ratings on CLISA reflect the risks associated with significant dependence on the Argentine economy and on large government clients, the exposure to foreign currency mismatch risks, a high leverage level, and limited financial flexibility,' said Standard & Poor's credit analyst Ivana Recalde.