DBRS cuts Espírito Santo

DBRS said it has downgraded its ratings of Espírito Santo Financial Group, SA, including the group’s senior long-term debt rating to B from BBB (low) and short-term instruments rating to R-5 from R-2 (middle).

At the same time, DBRS has placed all ratings under review with negative implications.

Concurrently, DBRS noted that it has lowered the company’s intrinsic assessment to B from BBB (low), while maintaining a SA-3 support assessment, indicating no expectation of timely systemic support and no uplift for support.

DBRS highlights its significant concerns regarding the deterioration in the group’s financial position combined with a high level of uncertainty around the extent of intercompany exposures and linkages to other Espírito Santo Group entities.

The agency said it has also placed the ratings of Banco Espírito Santo, SA under review with negative implications, including its senior long-term debt & deposit rating of BBB (low) and short-term debt & deposit rating of R-2 (middle).

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