Fitch Ratings on May 23 upgraded Banco Rodobens SA's long-term national rating to AA-(bra) from A+(bra) and its short-term national rating to F1+(bra) from F1(bra).
The long-term rating has a stable outlook.
The upgrade reflects the stronger credit profile of the Brazilian bank's controlling shareholder, the Rodobens Group, Fitch said. The group benefited from the resilient performance of its consortium business, its primary revenue source, despite an adverse economic setting and declining interest rates.
The expected recovery of the operational performance of the group's retail and real estate development segments also anchored the ratings upgrade.
The bank's ratings reflect its importance to its controller, with Fitch saying that the bank is a core subsidiary for Rodobens Group.
