Moody's lowers Banco Fibra view to stable

Moody's Investors Service said it affirmed Banco Fibra SA's long-term local- and foreign-currency deposit rating of B3, long-term senior unsecured foreign-currency debt program rating of B3 and B3 baseline credit assessment.

The outlook was changed to stable from negative.

The outlook revision acknowledges the modest improvements in the bank's profitability, benefiting from lower credit costs and tight control on operating expenses, Moody's said.

The stable outlook also considers an expectation that asset quality will stabilize, though at high levels as loan origination quality improves with new vintages and with a growing share of loans backed by receivables to mid-sized companies, the agency said.

Despite these credit positive developments, Fibra's capitalization remains weak and lower than that of other medium-sized banks in the system, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.