RIO DE JANEIRO, BRAZIL – S&P (Standard & Poor’s) reported that it had revised the ratings of 15 institutions in the Brazilian financial sector from positive to stable.
The measure was announced on Tuesday, April 7th, a day after the agency adopted an identical review of the outlook for the country’s sovereign rating. In addition, S&P says it has reaffirmed companies’ long and short term ratings.
The institutions that have suffered a change in outlook by S&P are: ABC Brasil Bank; Bradesco Bank; Citibank; Bank of Brazil; Nordeste do Brasil Bank; National Bank of Economic and Social Development (BNDES); Safra Bank; Santander Bank (Brazil); BV Bank; the B3; Caixa Econômica Federal (Federal Savings Bank); China Construction Bank (Brazil) Multiple Bank; Itaú Unibanco Holding; Itaú Unibanco; and Haitong Investment Bank of Brazil.
S&P says the action reflects the outlook that Brazil’s growth and fiscal performance will be affected in 2020 by the coronavirus pandemic and extraordinary government spending before a gradual rebound and fiscal consolidation can begin again.
The agency states that all 15 institutions have great exposure to Brazil’s risk. “In addition, many of the same factors that cause stress on the country rating in general also affect financial institutions,” it says.