S&P downgrades Brazil's Banco Pine

In response to increased loan portfolio risk and Brazil's negative economic outlook, Standard & Poor's downgraded the long term rating of local lender Banco Pine to 'B+' from 'BB-' with a negative outlook.

The negative outlook reflects the level of economic risk combined with the possibility that Pine may experience further financial deterioration amidst pressures on the Brazilian banking system, S&P said in a release.

Pine's financial stability has continued to deteriorate over the last 12 months and the bank is now considered to be in a worse position than its peers, said S&P.

The negative outlook also reflects the agency's view that the quality of assets and the bank's business stability could continue to deteriorate given Pine's loan book concentration.

Pine's relatively small market share and moderate profitability are factors that also help to increase its risk profile.