Fitch ups Banco BMC

Fitch Ratings said it upgraded Banco BMC SA's long-term issuer default ratings at foreign-currency BBB- from B- and local-currency BBB from B-, outlook stable, and its short-term foreign- and local-currency to F3 from B. Fitch also lifted the bank's individual rating to D from D/E and support rating to 3 from 5.

The upgrades reflect the support of the new controlling shareholder Bradesco and the Central Bank of Brazil's approval of the acquisition, according to Fitch.

The individual rating reflects the fact that BMC now will be an important and integrated component of a much stronger group, the agency said.

The long- and short-term local-currency issuer default ratings reflect the bank's broad national franchise and consistent earnings track record throughout the turbulent cycles of the Brazilian economy, which Fitch said can be attributed to steady management and a conservative base of diversified businesses and customers.

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