Fitch changes ABN Amro outlook

Rating agency Fitch has changed its outlook for the long-term rating of Netherlands-based bank ABN Amro to negative from stable, due in part to the bank's exposure to the potentially volatile market of Brazil. Other concerns include ABN Amro's mediocre cost base and a capital base that is weaker than several of its immediate international peers, the agency said in a statement Wednesday. ABN Amro's long-term rating was affirmed at AA, and its individual rating at B. The short-term and support ratings have been affirmed at F1+ and 1 respectively. "The bank's Brazilian operations have been consistently profitable and contributed c.14% of group net income in 1H02. However, the uncertain future for the Brazilian economy, and thus the uncertain domestic credit risk of ABN Amro's Brazilian subsidiary, raises questions over the unit's future risks and profitability," Fitch said.