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
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.