S&P Global Ratings revised the outlook on the global scale of several Brazilian financial institutions to stable from positive, following a similar action on the country's sovereign ratings.
The affected banks are Banco ABC Brasil SA, Banco Bradesco SA, Banco Citibank SA, Banco do Brasil SA, Banco do Nordeste do Brasil SA, Banco Nacional de Desenvolvimento Econômico e Social, Banco Safra SA, Banco Santander (Brasil) SA, Banco BV, B3 SA - Brasil Bolsa Balcão, Caixa Econômica Federal, China Construction Bank (Brasil) Banco Múltiplo SA, Itaú Unibanco Holding SA, Itaú Unibanco SA and Haitong Banco de Investimento do Brasil SA.
The banks' long- and short-term global scale ratings were affirmed. Sovereign ratings limit the companies' credit quality, given their exposure to sovereign risk, S&P Global Ratings said.
The sovereign action reflects diminishing prospects for an upgrade over the coming year due to the impact of the coronavirus pandemic, the rating agency said. Given structurally large fiscal imbalances and low economic growth, the country has limited fiscal space to address the shock without a significant increase in its debt burden.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.