S&P roundup: Banco Mercantil, Indusval, Intermedium ratings upgrade

Thursday, December 15, 2011

Standard and Poor's (S&P) upgraded Brazilian bank Banco Mercantil do Brasil's global scale rating to BB- from B+ and national scale rating to brA- from brBBB, both with stable outlooks, according to a press release.

The ratings agency noted that the upgrade reflects the bank's moderate business position, weak capital and profitability, adequate risk position, below-average funding and adequate liquidity.

The stable outlook balances the prospects for capital indicators and the bank's weak profitability with S&P's expectations that BMB may continue to expand its loan portfolio and, at the same time, maintain adequate asset quality and good liquidity in the next two years.

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To read the full report in Portuguese, go to this link


The ratings agency also upgraded the global and national scale ratings for Brazil's Banco Indusval & Partners, with stable outlooks, a press release reads.

S&P raised the global scale rating to BB from B+, while the national scale rating is now brA+/brA-1, upgraded from brBBB+/brA-3.

The ratings reflect the bank's weak business position, strong capital and profitability, moderate risk position, below-average funding and adequate liquidity compared to other Latin American banks.

S&P said Indusval's credit quality will remain stable next year, while it consolidates its relationship with private equity fund Warburg Pincus and moves toward the upper layer of the SME market.

To read the full report in Portuguese, go to this link


Banco Intermedium's Brazilian national scale ratings were also upgraded by S&P, with its long-term rating to brBBB from brBB+ and short-term rating to brA+/brA-1 from brBBB+/brA-3, all with stable outlooks, the ratings agency said in a statement.

S&P affirmed the bank's global scale rating of B, with a stable outlook.

To read the full report in Portuguese, go to this link