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S&P downgrades Banco Pine on deterioration in operating revenue

S&P Global Ratings on Dec. 5 lowered the ratings of Banco Pine SA citing deterioration in the Brazilian bank's operating revenue.

The rating agency downgraded the bank's long-term global scale rating to B- from B+ and long-term national scale rating to brBB- from brBBB+. The bank's stand-alone credit profile was also lowered to "b-" from "b+."

Meanwhile, the bank's short-term global scale rating was affirmed at B.

Banco Pine's operating revenue has eroded because of its deleveraging process and weak business products in 2017, S&P said. As a result, the rating agency does not expect the bank's loan portfolio and operating revenue will grow in the next 12 months.

Furthermore, the bank failed to maintain its business model compared to domestic peers due to Brazil's economic crisis and corruption investigations in the construction sector. The bank also experienced weaker internal capital generation due to sliding asset quality metrics, according to the rating agency.

S&P has a stable outlook on Banco Pine, which it said reflects the bank's high liquidity levels and the rating agency's expectation that the bank will maintain its capacity to meet financial commitments and regulatory requirements.

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