S&P raises Banco Citibank

Standard & Poor's said it raised its foreign currency counterparty credit ratings on Banco Citibank SA to BB from BB- following the upgrade of the foreign-currency rating assigned the Federative Republic of Brazil to BB from BB-.

The outlook is stable.

S&P said the ratings on Banco Citibank reflect the uncertainties of operating in Brazil and the bank's exposure to domestic economic risk, as well as strong competition in both the wholesale and the retail segments.

Offsetting these negatives, the rating is sustained by the benefits of having Citigroup Inc. (AA-/stable/A-1+) as a shareholder, including the expectation of parental support, S&P said, adding the rating also mirrors Citi's long track record and knowledge of the country and the historical good credit quality of its loan portfolio, as attested to by strong nonperforming loan indicators.

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