Fitch has upgraded Brazilian midsize lender Paraná Banco's national scale long and short-term ratings to A(bra) and F1(bra) from A-(bra) and F2(fra), respectively, with a stable outlook on the long-term rating, the ratings agency said in a statement.
The upgrade reflects Fitch's opinion that Paraná Banco has succeeded in implementing its business strategy, diversifying its operations prudently. The bank operates in so-called consignado lending, surety and reinsurance, and is currently boosting its SME financing business line.
Fitch also took into account Paraná's adequate liquidity and asset quality, as well as its high capital base.
Paraná Banco operates in the insurance sector via its subsidiary J Malucelli. The bank is controlled by the Malucelli family.
To read the full press release, in Portuguese, go to this link