S&P lifts Banco de Desenvolvimento

S&P said it raised the global scale issuer credit rating on Banco de Desenvolvimento de Minas Gerais SA (BDMG) to B from B-.

The agency also said it raised the national scale issuer credit rating on the bank to brA- from brBBB-.

S&P also said it lowered the bank's stand-alone credit profile to B from B+.

The outlook is negative.

The upgrades reflect a reassessment of the negative intervention risk from the state of Minas Gerais, the bank's controlling and sole shareholder, S&P said.

The agency said it now believes the state's ability to impair the bank's credit quality is lower than anticipated.

Although the state of Minas Gerais has faced expanding financial stress since 2016, S&P said it has no evidence of extraordinary negative intervention in the bank.

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