trending Market Intelligence /marketintelligence/en/news-insights/trending/z6ty97XJoXbtB29gIi0BeA2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Moody's upgrades Banco Modal after pivot to digital investments

Street Talk - Ep. 64: Coronavirus jumpstarts digital adoption

Street Talk Podcast

Street Talk - Ep. 63: Deal talks continue amid bank M&A freeze, setting up for strong Q4

Street Talk Podcast

Street Talk - Ep. 62: 'Brutal' outlook for oil demand offers banks in oil patch no relief

Amid Q1 APAC Fintech Funding Slump, Payment Companies Drove Investments


Moody's upgrades Banco Modal after pivot to digital investments

Moody's on Dec. 23 upgraded Banco Modal SA's Brazilian national scale deposit ratings, citing improvements in asset quality driven by a change in the bank's business model.

The rating agency raised the bank's long- and short-term national scale deposit ratings to Baa1.br and BR-2 from Baa2.br and BR-3, respectively.

It also upgraded the company's long-term national scale counterparty risk rating to A1.br from A2.br, while affirming the lender's B1/Not Prime local and foreign currency deposit ratings, "b1" baseline credit assessment and Ba3 long-term counterparty risk ratings.

The outlook on all ratings remains stable.

The upgrade reflects "improvements in asset quality metrics resulting from the run-off of legacy corporate problem loans as the bank gradually shifts its operations to focus on digital investments and brokerage service from commercial lending," Moody's said.

It added that higher generation of noninterest income through digital platform ModalMais, which was previously a retail broker platform, has benefited the bank's profitability and also supports the upgrade of the national scale ratings.

Although the rating agency expects Banco Modal's capitalization to improve in 2020 alongside increased earnings generation and lower risk weighted assets, the company's new business model will face challenges posed by stronger competition from banks and financial technology firms, many of which are also investing in digital distribution channels.