Fitch Ratings on March 12 downgraded the viability ratings of Itaú Unibanco SA and Itaú Unibanco Holding SA to "bb" from "bb+," following the downgrade of Brazil's sovereign rating to BB- from BB.
Despite the downgrade, the ratings reflect the banks' very strong credit profile, adequate loss absorption capacity, high liquidity and stable and diversified funding base, Fitch said. The rating agency believes that the entities will be able to withstand a further deterioration in the operating environment.
Fitch also lowered the banks' long-term foreign and local currency issuer default ratings to BB from BB+, given that these ratings are driven by the viability ratings. Meanwhile, Fitch affirmed the banks' short-term local and foreign currency issuer default ratings at B.
The outlook on the long-term ratings has been revised to stable from negative.
Fitch didn't take any actions on the entities' national scale ratings because local relativities remain unchanged.
