S&P Global Ratings on Jan. 19 revised its outlook on Haitong Banco de Investimento do Brasil SA's global and national scale ratings to stable from positive, while lowering the bank's long-term national scale rating to "brA" from "brA+."
The rating agency also affirmed Haitong Banco de Investimento's global scale ratings at BB-/B.
The outlook revision reflects the same action on the lender's Portugal-based parent, Haitong Bank SA, earlier in January. S&P noted that almost all major banks in Portugal are undergoing significant restructuring or management and ownership changes.
The rating agency considers Haitong Banco de Investimento to be a core subsidiary for Haitong Bank given its high importance, ownership, strategy and long-term commitment to the Brazilian unit, which has become a significant earnings contributor for the parent.
As a result, S&P has equalized the Brazilian unit's ratings and outlook with the ratings on its parent. The agency believes the rest of the group will provide support to Haitong Banco de Investimento under any foreseeable circumstances, except in an event of sovereign distress.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.