S&P affirms Banco BMG

Standard & Poor's said it affirmed its B+/B counterparty credit rating on Brazil-based Banco BMG SA. The outlook is stable.

S&P said the ratings on Banco BMG reflect the risks of a relatively small bank operating in a highly competitive market and with significant product concentration. In addition, the bank is dependent on wholesale funding and faces the challenge of maintaining a stable and diversified funding base.

These risks are partially offset by a well-defined and successful strategy as niche bank, good execution benefiting from technology and distribution capabilities, sound results in terms of profitability and good asset quality, the agency said.

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