S&P Global Ratings on Aug. 2 maintained its CreditWatch Negative listing on the BB/B foreign currency and brAA-/brA-1 local currency ratings of Caixa Econômica Federal.

Based on the outlook of Brazil, the placement also reflects the risk of a ratings downgrade in the next three months amid more stressed political and economic dynamics, S&P said.

The bank's stand-alone credit profile remains "bb," despite deterioration in the bank's capitalization and still-high levels of refinancing, S&P said.

"On the other hand, Caixa has an almost certain likelihood of government support due to its integral link with and critical role to the government," S&P noted. "Therefore, we will continue equalizing Caixa's ratings to those of Brazil."

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