End Times and Current Events

General Category => Latin America => Topic started by: Psalm 51:17 on July 01, 2012, 05:14:48 pm

Title: Moody's cuts strength ratings on 8 Brazilian banks
Post by: Psalm 51:17 on July 01, 2012, 05:14:48 pm
Moody's cuts strength ratings on 8 Brazilian banks
28 June 2012, by Robert Daniel - Tel Aviv (MarketWatch)

Moody's Investors Service on Wednesday lowered the stand-alone financial-strength ratings of eight Brazilian institutions by one to three levels.

The credit-rating firm took the action as part of a worldwide review of banks that carry assessments higher than those of the nations in which they are located.

Moody's cut four banks' stand-alone ratings and credit assessments to the C-/Baa2 level of Brazil.

They are Banco do Brasil SA, Banco Safra SA, Banco Santander Brasil and HSBC Bank Brasil.

The creditworthiness of these four "cannot be completely delinked from the credit strength of the government," Moody's said.

The firm cut three Brazilian banks to C-/Baa1, one notch above the sovereign: Banco Bradesco SA, Banco Itau Unibanco SA and Banco Itau BBA SA.

These three exceptions reflect risk-mitigating factors including diversity in where they do business and in their earnings sources, Moody's said.

And it cut Banco Votorantim SA to C-/Baa3, one notch below the sovereign, reflecting what Moody's called the bank's "poor financial performance, including weak asset quality and profitability, and the prospects of ongoing challenges to its financial strength.

Moody's cut the local-currency-deposit or issuer ratings on 11 financial institutions to reflect their lower stand-alone assessments or lower ratings at their parent banks.

Moody's also cut the long-term local-currency issuer rating of securities-exchange operator BM&F Bovespa to A-3, two notches above the sovereign, from A-1.