Standard & Poor's RatingsServices on March 30 placed its BB/B global scale and brA+/brA-1 national scaleratings on Banco VotorantimSA on CreditWatch negative.

S&P also placed its brA- subordinated debt rating on and its brA+/brA-1 ratings on Votorantim Finanças SA on CreditWatch negative.

The placements follow a similaraction on Banco Votorantim's shareholder, the Votorantim group.

The ratings on the bank are onenotch above its stand-alone credit profile of "bb-" due to S&P'sassessment of the lender as a moderately strategic subsidiary for ultimateparent Votorantim SA.

Under a hypothetical scenario ofa Brazilian default that would likely cause Banco Votorantim to default, therating agency said it believes the contingent liabilities to the group couldincrease sharply.

S&P Ratings and Global MarketIntelligence are owned by McGraw Hill Financial Inc.