Moody's: Banco ABC to negative

Moody's Investors Service said it affirmed Banco ABC Brasil SA's long-term global local-currency deposit rating at Baa3, long-term global foreign-currency deposit rating at Baa3, long-term Brazilian national-scale rating at Aa1.br and long-term foreign-currency subordinated debt rating at Ba1.

The outlook was changed to negative from stable.

The bank's prime 3 and BR-1 short-term global and national scale deposit ratings remain unchanged, Moody's said.

The agency said the ratings consider the bank's track record of stable core profitability and adequate asset quality, which is the result of a well established corporate lending franchise and disciplined credit origination and risk management.

As a subsidiary of Arab Banking Corp. BSC, the bank has secured its access to funding both from domestic and international sources at privileged conditions relative to those of similarly rated peers, an advantage that has supported the bank's growth and margin performance to date, Moody's said.

The agency said it recognizes the bank's ability to fund itself primarily in the domestic market with limited reliance on its parent.

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