DBRS downgrades Espirito Santo

DBRS, Inc. said it downgraded Espirito Santo Financial Group, SA’s senior long-term debt rating to CC from B, dated subordinated debt rating to CC (low) from B (low), senior convertible bonds due 2025 to CC and guaranteed senior notes to CC. All ratings remain under review with negative implications.

The agency said it has significant concerns about the rapid deterioration in the group's liquidity position that has led it to sell some of its stake in Banco Espirito Santo, SA in order to meet a margin call. DBRS also has concerns that if entities within the Espirito Santo Group continue to face financial difficulties, this could impact the repayment of these entities' obligations to various lenders.

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