S&P also affirmed the bank's BB-/B global scale counterparty credit rating and revised the outlook to positive from stable, a press release from the agency reads.
The rating actions reflect the bank's diversified revenues, "while keeping its above-average asset quality and adequate funding and liquidity."
S&P noted that as a niche bank focused on lending to midsize companies, Pine's loan portfolio tends to be more concentrated than its niche peers, and that its funding profile is dependent on more expensive, volatile institutional investors.
The agency expects the bank to keep growing its loan portfolio and to continue pursuing its current business strategy. Thanks to a conservative risk management, Pine's asset quality is one of its main strengths and compares positively to other Brazilian banks, S&P noted.
Pine's loan portfolio grew 24.1% at end-2Q11 from 12 months prior to 6.44bn reais (US$4.01bn). Corporate lending was up 30.3% to 6.25bn reais in the same comparison, according to its latest financial statements.
To read the full press release, go to this link