S&P Global Ratings on June 5 affirmed its BB/B issuer credit ratings on Brazilian stock exchange operator BM&FBOVESPA SA – Bolsa de Valores Mercadorias e Futuros.
The ratings remain on CreditWatch with negative implications. S&P also revised the company's stand-alone credit profile to "bbb+" from "a-."
BM&FBOVESPA's completed merge with fellow stock exchange operator Cetip SA is bolstering its strong business position through increasing scale and improved business diversification in complementary lines, S&P said. However, the deal also led to increased leverage, which eroded the company's financial risk profile despite the planned deleveraging in the next two years.
The CreditWatch negative placement reflects the risk of having the bank's rating lowered in the next three months due to a downgrade in the Brazilian sovereign amid a more volatile political sphere.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.