Fitch has upgraded its long-term national scale rating to A-(bra) from BBB+(bra) on Brazilian midsize lender Banco Industrial, Fitch said in a press release.
As a result of the upgrade, the ratings outlook was changed to stable from positive. Fitch also affirmed Banco Industrial's short-term national scale rating at F2(bra) and support rating at 5.
The upgrade reflects the bank's conservative management, which has resulted in reduced credit leverage, supported by a sustained increase in its assets and good liquidity levels.
In addition, Banco Industrial has put in place adequate business strategies for its core business - the SME segment - which together with the performance of its portfolio should reflect improvements in its profitability.
Fitch also took into account the bank's limited size, a highly competitive business environment and the relative concentration of its assets and liabilities.
To read the full press release, in Portuguese, go to this link