Fitch Ratings changed the outlook of Banestes SA - Banco do Estado do Espírito Santo's national long-term rating to positive from stable after affirming it at A+(bra).
The rating agency cited "an improvement in Fitch's core metrics for profitability, capitalization and liquidity through a more challenging economic cycle relative to similarly rated peers on the national scale."
Fitch also pointed to the bank's moderate risk appetite, management quality and financial profile in the decision. The rating agency did highlight that as a public entity, "Banestes is potentially subject to political influence, given its control structure, despite its solid corporate governance structure."
The rating agency also affirmed its long- and short-term foreign and local currency issuer default ratings at BB- and B, respectively. The lender's national short-term rating and viability rating were also affirmed at F1(bra) and "bb-," respectively.