Moody’s downgrades 31 Brazilian banks

Moody's Investors Service said it downgraded ratings assigned to 29 Brazilian banks and their respective offshore branches, Itau Unibanco Holding SA and the Brazilian stock and future exchange BM&F Bovespa SA.

These actions follow Moody's Feb. 24 downgrade of Brazil's government bond rating to Ba2 from Baa3, and the resulting changes in the country's debt and deposit ceilings.

The outlook on the sovereign rating is negative.

Consequently, Moody's downgraded 29 entities' foreign currency deposit ratings to Ba3, in line with the new foreign currency deposit ceiling, and 18 entities' local currency deposit and/or issuer ratings to Ba2. In addition, 14 banks' standalone BCAs were downgraded to ba2. The affected local currency deposit and issuer ratings and BCAs were constrained by the sovereign rating because of their issuers' close economic linkages to the government.

The following banks were affected: Banco ABC Brasil SA, Banco Alfa de Investimento SA, Banco BBM SA, Banco Bradesco SA and Banco Bradesco SA Cayman Branch, Banco BTG Pactual SA, Banco Cetelem SA, Banco Citibank SA, Banco Cooperativo Sicredi SA, Banco Daycoval SA, Banco do Brasil SA and Banco do Brasil SA Cayman Branch, Banco do Nordeste do Brasil SA, Banco do Estado do Rio Grande do Sul SA, Banco do Estado de Sergipe SA, Banco do Estado do Para SA, Banco Ford SA, Banco GMAC SA, Banco Industrial do Brasil SA, Banco Sofisa SA, Bndes - Banco de Desenvolvimento Economico e Social, Banco Mizuho do Brasil SA, Banco PSA Finance Brasil SA, Banco Safra SA and Banco Safra SA Cayman Branch, Banco Santander (Brasil) SA and Banco Santander (Brasil) SA - Cayman Branch, Banco Votorantim SA and Banco Votorantim SA Nassau Branch, BM&FBovespa SA, Caixa Economica Federal, China Construction Bank (Brasil) SA and China Construction Bank (Brasil) SA, Cayman, HSBC Bank Brasil SA - Banco Multiplo, ING Bank NV - Sao Paulo Branch, Itau Unibanco Holding SA and Itau Unibanco Holding SA Cayman Branch and Itau Unibanco SA and Itau Unibanco SA Cayman Branch.

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