Fitch Upgrades Brazilian Banks & Insurer after Sovereign Upgrade.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of & SAO Sa´o n. 1. (Zool.) Any marine annelid of the genus Hyalinæcia, especially H. tubicola of Europe, which inhabits a transparent movable tube resembling a quill in color and texture. PAULO, Brazil -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. announced today several rating upgrades affecting Brazilian banks in the wake of the upgrade of the country's foreign and local currency Issuer Default Ratings (IDRs) to 'BB' by Fitch (see separate release available on the Fitch Ratings web site at 'www.fitchratings.com'). The long-term Outlook is Stable, except for the Local currency long-term IDR IDR In currencies, this is the abbreviation for the Indonesian Rupiah. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. for Banco Pactual S.A. and Pactual Overseas Corporation which remain on Rating Watch Positive. All other banks and leasing companies' ratings are affirmed. The full list appears below: Banco ABC ABC in full American Broadcasting Co. Major U.S. television network. It began when the expanding national radio network NBC split into the separate Red and Blue networks in 1928. Brasil S.A. -- Foreign currency long-term IDR to 'BB' from 'BB-(BB Minus)'; -- Local currency long-term IDR to 'BB+' from 'BB'; -- National long-term rating to 'AA-(AA minus)(bra)' from 'A(bra)'. -- National short-term rating to 'F1+(bra) 'from 'F1(bra)'. Banco ABN Amro ABN AMRO Algemene Bank Nederland-Amsterdam Roterdam Bank (Dutch bank) Real S.A. -- National long-term rating to 'AA+(bra)' from 'AA(bra)'. ABN Amro Arrendamento Mercantil S.A. -- National long-term rating to 'AA+(bra)' from 'AA(bra)'. ABN Amro Arrendamento Mercantil S.A. - 4th and 5th Issuances of Debentures -- National long-term rating to 'AA+(bra)' from 'AA(bra)'. Banco Bradesco Banco Bradesco, short for Banco Brasileiro de Descontos, that is 'Brazilian Discount Bank', is one of the Big Four banks in Brazil, the others being Banco do Brasil, Banco Itaú and Unibanco. Bradesco is the largest private bank in Brazil. S.A. -- Foreign currency long-term IDR to 'BB' from 'BB-(BB minus)'; -- Local currency long-term IDR to 'BBB-(BBB BBB A medium grade assigned to a debt obligation by a rating agency to indicate an adequate ability to pay interest and repay principal. However, adverse developments are more likely to impair this ability than would be the case for bonds rated A and above. minus)' from 'BB+'; -- National long-term rating to 'AA+(bra)' from 'AA(bra)'. Bradesco Leasing S.A. Arrendamento Mercantil - 8th and 9th Issuances of Debentures -- National Long-term rating to 'AA+(bra)' from 'AA(bra)' Bradesco Seguros S.A. -- Insurer financial strength rating to 'BBB-(BBB minus)' from 'BB'. -- National Insurer financial strength rating to 'AA+(bra)' from 'AA(bra)'. Banco da Amazonia S Am·a·zo·ni·a The vast basin of the Amazon River in northern South America. It remains largely unpopulated and undeveloped, especially in the interior. .A. (Basa) -- Foreign currency long-term IDR to 'BB' from 'BB-(BB minus)'; -- Local currency long-term IDR to 'BB' from 'BB-(BB minus)'; -- National long-term rating to 'AA-(AA minus)(bra) 'from 'A+(bra)'. -- National short-term rating to 'F1+(bra) 'from 'F1(bra)'. Banco de Investimentos Credit Suisse The Credit Suisse Group (SWX:CSGN, NYSE: CS) is a financial services company, headquartered in Zürich, Switzerland. It is the second-largest Swiss bank, behind UBS AG. (Brasil) S.A. -- National long-term rating to 'AA+(bra) from 'AA(bra)' Banco do Brasil Banco do Brasil S.A. is a major Brazilian bank headquartered in Brasília. The bank was founded in 1808 and is the oldest surviving bank in Brazil — one of the oldest of Latin America. S.A. -- Foreign currency long-term IDR to 'BB' from 'BB-(BB minus)'; -- Local currency long-term IDR to 'BB+' from 'BB'; Banco do Estado de Sao Paulo S.A. (Banespa) -- Foreign currency long-term IDR to 'BB' from 'BB-(BB minus)'; -- Local currency long-term IDR to 'BBB-(BBB minus)' from 'BB+'; -- National long-term rating to 'AA+(bra)' from 'AA(bra)'. Banco Santander Brasil S.A. -- Foreign currency long-term IDR to 'BB' from 'BB-(BB minus)'; -- Local currency long-term IDR to 'BBB-(BBB minus)' from 'BB+'; -- National long-term rating to 'AA+(bra)' from 'AA(bra)'. Banco Santander Meridional S me·rid·i·o·nal adj. Of or relating to meridians or a meridian. .A. -- Foreign currency long-term IDR to 'BB' from 'BB-(BB minus)'; -- Local currency long-term IDR to 'BBB-(BBB minus)' from 'BB+'; -- National long-term rating to 'AA+(bra)' from 'AA(bra)'. Banco Itau Holding Financeira S.A. -- Foreign currency long-term IDR to 'BB' from 'BB-(BB minus)'; -- Local currency long-term IDR to 'BBB-(BBB minus)' from 'BB+'; -- National long-term rating to 'AA+(bra)' from 'AA(bra)'. Banco Itau S.A. -- Foreign currency long-term IDR to 'BB' from 'BB-'; -- Local currency long-term IDR to 'BBB-(BBB minus)' from 'BB+'; -- National long-term rating to 'AA+(bra)' from 'AA(bra)'. Banco Itau BBA BBA abbr. Bachelor of Business Administration S.A. -- Foreign currency long-term IDR to 'BB' from 'BB-(BB minus)'; -- Local currency long-term IDR to 'BBB-(BBB minus)' from 'BB+'; -- National long-term rating to 'AA+(bra)' from 'AA(bra)'. Banco ItauLeasing S.A. 8th Issuance of Debentures -- National long-term rating to 'AA+(bra)' from 'AA(bra)'. Banco Pactual S.A. -- Foreign currency long-term IDR to 'BB' from 'BB-(BB minus)'; -- Local currency long-term IDR to 'BB'/Rating Watch Positive from 'BB-(BB minus)'/ Rating Watch Positive; Pactual Overseas Corporation (POC (Proof Of Concept) See PoC exploit. POC - Point Of Contact ) -- Foreign currency long-term IDR to 'BB' from 'BB-(BB minus)'; -- Local currency long-term IDR to 'BB'/Rating Watch Positive from 'BB-(BB minus)'/ Rating Watch Positive. Banco Safra Banco Safra S.A. is a notable and respected player in the Brazilian and international banking sector, ranking sixth among the country’s largest private sector financial institutions in terms of total assets. S.A. -- Foreign currency long-term IDR to 'BB' from 'BB-(BB minus)'; -- Local currency long-term IDR to 'BB+' from 'BB'; -- National long-term rating to 'AA(bra)' from 'AA-(AA minus)(bra)'. Safra Leasing S.A. - Arrendamento Mercantil -- National long-term rating to 'AA(bra)' from 'AA-(AA minus)(bra)'. Safra Leasing S.A. - Arrendamento Mercantil S.A. - 12th Issuance of Debentures -- National long-term rating to 'AA(bra)' from 'AA-(AA minus)(bra)'. Banco Standard de Investimentos S.A. -- National long-term rating to 'AA(bra)' from 'AA-(AA minus)(bra)'. Banco Volkswagen S “VW” redirects here. For the airline using IATA designator VW, see Aeromar. Volkswagen AG (ISIN: DE0007664005), or VW, is an automobile manufacturer based in Wolfsburg, Germany. .A. -- National long-term rating to 'AA(bra)' from 'AA-(AA minus)(bra)'. Banco Votorantim S.A. -- Foreign currency long-term IDR to 'BB' from 'BB-(BB minus)'; -- Local currency long-term IDR to 'BBB-(BBB minus)' from 'BB+'; -- National long-term rating to 'AA+(bra)' from 'AA(bra)'. BV Leasing - Arrendamento Mercantil S.A. - 1st Issuance of Debentures -- National long-term rating to 'AA+(bra)' from 'AA(bra)'. BankBoston Banco Multiplo S.A. -- National long-term rating to 'AA+(bra)' from 'AA(bra)'. BankBoston Leasing S.A. - Arrendamento Mercantil -- National long-term rating to 'AA+(bra)' from 'AA(bra)'. BankBoston Leasing S.A. - Arrendamento Mercantil - 5th Issuance of Debentures -- National long-term rating to 'AA+(bra)' from 'AA(bra)'. Unibanco-Uniao de Bancos Brasileiros S.A. -- Foreign currency long-term IDR to 'BB' from 'BB-(BB minus)'; -- Local currency long-term IDR to 'BB+' from 'BB'; -- National long-term rating to 'AA(bra)' from 'AA-(AA minus)(bra)'. The upgrade of the Local currency long-term IDR and national ratings of Banco ABC Brasil, Banco ABN AMRO Real, ABN Amro Arrendamento Mercantil, Banco de Investimento Credit Suisse (Brasil), Banco do Estado de Sao Paulo S.A. (Banespa), Banco Santander Brasil, Banco Santander Meridional, BankBoston Banco Multiplo, BankBoston Leasing - Arrendamento Mercantil, Banco Standard de Investimento, Banco Volkswagen, Banco Votorantim and BV Leasing - Arrendamento Mercantil are support-driven and reflect the financial strength of their respective ultimate parents, all of which carry a Local currency long-term IDR investment grade ratings by Fitch; the Support ratings of '3' assigned to these banks reflect Fitch's belief that their parents have both the capacity and willingness to support these entities. The upgrade of the Local currency long-term IDR of Banco do Brasil and Banco da Amazonia as well as the upgrade of the national ratings of the latter are driven by potential support from local authorities as well as the improved financial performance over recent years and the historical deposit stability exhibited by Banco do Brasil. The upgrade of the Local currency long-term IDR and national ratings of Banco Bradesco, Bradesco Leasing Arrendamento Mercantil, Banco Itau Holding Financeira, Banco Itau, Banco Itau BBA, Banco ItauLeasing, Unibanco, Banco Safra and Safra Leasing reflect the banks' intrinsic financial strength, evident in the Individual ratings of the banks. A leading market position, integration with its parent and a solid business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets are the drivers for the upgrades on Bradesco Seguro's Insurer Financial Strength and National Insurer Financial Strength ratings. A well-defined strategy and philosophy that relies on experienced partners, strict risk controls and technical capabilities to preserve capital while operating profitably are the drivers for the upgrade on Banco Pactual's and Pactual Overseas Corporation's Local currency long-term IDR. Additionally, the upgrade of the Foreign currency long-term IDR reflect ratings that were capped by the sovereign rating of Brazil and remain in most cases below the Local currency long-term IDR of the issuers. The Local currency long-term IDR for Banco Pactual S.A. and Pactual Overseas Corporation remain on Watch Positive following the announcement of the agreement between the shareholders of Pactual to sell the bank and its subsidiaries to UBS UBS Union Bank of Switzerland UBS United Bible Societies UBS United Blood Services UBS United Buying Service UBS Used Bookstore UBS University Business Services UBS Universal Building Society (UK) UBS Ulaanbaatar Broadcasting System A.G. (Rated long-term IDR 'AA+'/ Outlook Stable). Fitch's upgrade of Brazil's ratings are a result of the country's on-going improvement in public and private external finances and a macroeconomic mac·ro·ec·o·nom·ics n. (used with a sing. verb) The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors. policy framework that has proved robust in the face of political and financial market pressures. The rating upgrades also reflect Brazil's enhanced external balance sheet and the fact that the country has weathered the latest storm affecting the capital markets in emerging countries. Fitch believes that Brazil's next administration will continue to maintain prudent fiscal and monetary policies but that it is unlikely to implement deep structural reforms. Fitch recognises the impact of a improving external accounts of the sovereign, the benefits of economic stabilisation, decreasing interest rates and inflation on the operating environment In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system. for the Brazilian banking system, which will enable the strongest institutions to further expand operations and diversify earnings stream. Note to Editors: Fitch's National ratings provide a relative measure of creditworthiness Creditworthiness The condition in which the risk of default on a debt obligation by that entity is deemed low. Creditworthiness Eligibility of an individual or firm to borrow money. for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated 'AAA' and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified sig·ni·fied n. Linguistics The concept that a signifier denotes. [Translation of French signifié, past participle of signifier, to signify.] Noun 1. by the addition of an identifier for the country concerned, such as 'AAA(bra)' for National ratings in Brazil. Specific letter grades are not therefore internationally comparable. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. 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 Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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