Banco Rural S.A. Downgraded To 'B-' From 'B' On Weak Capital, Deteriorating Asset Quality, And Losses, Outlook Negative Dec 12
- Language: English
- Published: December 2012
Following our review of Banco Rural under Standard & Poor's revised bank criteria (published on Nov. 9, 2011), we are raising our global scale issuer credit rating on the bank to 'B' from 'B-' and our national scale rating to 'brBB+' from 'brBB'. The outlook on both scales is stable. Our ratings reflect Banco Rural's weak business position, weak capital and earnings, moderate risk position, below average funding, and moderate liquidity compared with other Brazilian banks. In our view, our expectation that Banco Rural's earnings capacity will be modest because of its limited financial flexibility. As we previously announced, on Dec. 13, 2011, Standard & Poor's Ratings Services raised its global scale issuer credit rating on Banco Rural S.A. to...
Companies mentioned in this report are: Banco Rural S.A.
Action: Outlook: Stable
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Banco Rural S.A.