Tags: Moody | Downgrade | Portugal | Banks | Brazilian | Units

Moody's May Downgrade Portugal Banks' Brazilian Units

Wednesday, 15 Jun 2011 01:46 PM

Moody's Investors Service on Wednesday warned it may downgrade the ratings of three Brazilian subsidiaries of Portuguese banks BES and Banif on funding concerns.

Moody's last week placed the ratings of Banco Espirito Santo and Banco Internacional do Funchal on review for a possible downgrade as it assesses their funding dynamics and the performance of recurring earnings.

"Moody's will also observe the possibility of a decline in business volume and revenues generation given the existing synergies between the operations of the parents and their subsidiaries," the agency said in a statement.

The subsidiaries affected are: BES Investimento do Brasil S.A. Banif - Banco Internacional do Funchal S.A., and Banif Banco de Investimento S.A. Moody's last rating action on BESI Brasil was on April 8, when it downgraded the global local-currency deposit ratings and foreign-currency senior unsecured debt ratings of the subsidiary to "Ba1" and "Not Prime", from "Baa2" and "P-3."

Moody's also downgraded BESI Brasil's foreign-currency deposit ratings to "Ba1" and "Not Prime" from "Baa3" and "P-3."

The bank financial strength rating (BFSR) of D-plus and the short-term Brazilian national scale rating of BR-1 were both confirmed.

Moody's last rating action on both Banif Brasil and Banif Investimento took place on Nov. 3, 2010, when it downgraded the financial strength ratings of both banks to "E-plus" from "D-minus," and their long-term global local-currency and foreign-currency deposit ratings to "B1" from "Ba3." The short-term global local-currency and foreign-currency deposit ratings of "Not Prime" were not affected by the rating action.

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Moody's Investors Service on Wednesday warned it may downgrade the ratings of three Brazilian subsidiaries of Portuguese banks BES and Banif on funding concerns. Moody's last week placed the ratings of Banco Espirito Santo and Banco Internacional do Funchal on review for a...
Moody,Downgrade,Portugal,Banks,Brazilian,Units
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2011-46-15
Wednesday, 15 Jun 2011 01:46 PM
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