S&P revises outlook to positive on 6 banks, following action on sovereign rating

- Tuesday, May 24, 2011

S&P revises outlook to positive on 6 banks, following action on sovereign rating

S&P has revised its outlook to positive from stable on the BBB- local and foreign currency counterparty credit ratings on six Brazilian banks, following similar action taken on the country's foreign currency sovereign rating, a press release from the ratings agency reads.

The list includes federally controlled banks Banco do Brasil andBanco do Nordeste and national development bank BNDES.

S&P also revised the outlook on three private sector banks - Santander Brasil (NYSE: BSBR), HSBC Bank Brasil and Banco Citibank, which are owned by Spain's Santander (NYSE: STD), the UK's HSBC (NYSE: HBC) and the US' Citigroup (NYSE: C), respectively.

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The change in Brazil's sovereign outlook "was driven by the country's strengthening prospects for steady, long-term GDP growth, along with modest current account and fiscal deficits that should gradually reduce the country's vulnerability to negative external shocks," S&P said.

To read the full press release on the banks' outlook, in English, go to this link

To read the full press release on Brazil's sovereign rating, in Portuguese, go to this link

To read the full press release on Brazil's sovereign rating, in Spanish, go to this link