S&P rates BicBanco B+

Standard & Poor's said it assigned its B+ counterparty credit rating to Banco Industrial e Comercial SA (BicBanco).

The outlook is stable.

The rating reflects the risks of future margin decline and the challenge to grow operations under a scenario of increasing competition, S&P said. The rating also factors in the weak capitalization and the challenge to build and maintain a diversified funding base, the agency added.

The positive factors incorporated in the ratings include the bank's well-defined strategy, good asset quality indicators that benefit from management in the short term, secured loans to middle-market companies as its core business, and adequate liquidity management, S&P said.

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