Fitch Ratings on May 15 upgraded Brazil-based Banco Sofisa SA's long-term national rating to A+(bra) from A(bra), while revising the outlook to positive from stable.
The rating upgrade and the outlook revision reflect the improvements in Banco Sofisa's franchise and business model since 2014, which has improved its financial indicators and has better positioned the bank compared to its peers.
The bank has reported good retail deposits through its digital platform, a strategy in which it pioneered and successfully implemented, Fitch said. The ratings also factor in Sofisa's nature as a niche bank, with typical concentrations in its business.
Banco Sofisa's loan portfolio is somewhat fluctuating, due to the volatility of Brazil's economic environment in recent years, although it remains higher than the market average, Fitch said.
The rating agency also affirmed the bank's short-term national rating at F1(bra).
