S&P Global Ratings on March 28 affirmed its brB Brazilian national-scale issuer credit rating on Banco Mercantil do Brasil SA, while at the same time it affirmed and withdrew the bank's B-/C global scale ratings.

The outlook on the national scale ratings remains negative.

The ratings reflect the bank's somewhat concentrated business profile counterbalanced by its vast client base. They also considered S&P's view that the bank will maintain its current internal generation, leading to a forecast risk-adjusted capital ratio of about 4.5% for the next two years.

S&P also views the bank as having weaker asset quality metrics compared to peers, a funding structure which still has narrow diversification of stable funding services and a liquidity level that provides adequate cushion to cope with cash outflows over the next 12 months.

Meanwhile, S&P withdrew the global scale ratings upon the bank's request.

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