S&P Global Ratings on Feb. 20 assigned brAA-/brA-1+ long- and short-term issuer credit ratings on the Brazilian national scale to Banco Sumitomo Mitsui Brasileiro SA.

The ratings incorporate S&P's view that the company is a highly strategic subsidiary for its Japan-based parent company, Sumitomo Mitsui Financial Group Inc. The operations of the Brazilian bank are in line with its parent's strategy, presenting a strong integration with the group, while identifying a close link between the reputation of both the subsidiary and the controller, S&P said.

The long-term outlook is stable, reflecting that of Brazil's sovereign ratings.

However, the ratings still incorporate the bank's small holdings in the domestic banking market and the reliance on its revenue sources on a few lines of business as its operations focus on lending to the corporate segment. Its credit portfolio, in turn, has presented low levels of default, despite having a concentration significant in terms of customers, S&P said.

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.