S&P: Banco Itau unaffected

Standard & Poor's said Monday that the announcement that Banco Itaś Holding Financeira SA is in the process of increasing its participation in Credicard Banco SA to 50% from 33.3%, and acquiring Orbitall's (processing company) whole capital from Unibanco and Citigroup will not affect S&P's ratings on Banco Itaś Holding Financeira SA's main subsidiary, Banco Itaś SA (local currency: BB/stable/B; foreign currency: BB-/stable/B).

S&P said the acquisition is in line with the bank's strategy of increasing its presence in the profitable credit card market, which is strategically important for its diversification and good profitability. Profitability and liquidity should also be maintained at strong levels, and the group benefits from the good growth prospects for the credit card industry in Brazil.

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