Fitch changes Banrisul to negative

Fitch Ratings said it affirmed the local and foreign currency issuer default ratings of Banco do Estado do Rio Grande do Sul SA (Banrisul), as well as its national ratings.

The issuer default ratings and long-term national rating outlook was revised to negative from stable.

Fitch said the outlook change reflects its expectation of deterioration in Banrisul’s asset quality and capitalization ratios as a result of the weakening of the State of Rio Grande do Sul's financial profile. A potential deterioration in the bank's asset quality would demand higher reserves expenses and impact Banrisul's profitability and its internal capital generation.

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