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Fitch affirms ratings of 8 foreign-owned, Brazilian banks

Fitch Ratings on Feb. 1 affirmed the ratings of eight Brazilian subsidiaries owned by foreign banks.

Fitch affirmed the long- and short-term national ratings, at AAA(bra) and F1+(bra), respectively, of Banco de Investimentos Credit Suisse (Brasil) SA, Banco Rabobank International Brasil SA, Deutsche Bank SA – Banco Alemão, Banco Société Générale Brasil SA, Bank of America Merrill Lynch Banco Múltiplo SA, China Construction Bank (Brasil) Banco Múltiplo SA, and Banco Crédit Agricole Brasil SA.

Meanwhile, the rating agency maintained Banco Caixa Geral Brasil SA's long- and short-term national ratings at A-(bra) and F2(bra), respectively.

The outlook on all long-term ratings is stable. The national ratings reflect the ongoing support from the banks' respective parent companies, Fitch said.

With the exception of Deutsche Bank SA, Fitch considers the AAA(bra)-rated banks to be "strategically important" to their parent companies due to their strong operational and commercial synergies. Fitch also considers Deutsche Bank SA to be "strongly aligned" with its parent company, noting that Germany-based Deutsche Bank AG confirmed that it will not suspend its activities in Brazil despite having pulled out of several other Latin American countries.

Conversely, Fitch noted that the reorganization process of Banco Caixa Geral Brasil's parent, Portugal-based Caixa Geral de Depósitos SA, could lead it to prioritize domestic operations to the detriment of its investments outside its home country. While there is still no formal decision of the controlling shareholder on its operations in Brazil, Fitch maintained that Caixa Geral de Depósitos will support its Brazilian unit if needed.