Moody's boosts Brazilian banks

Moody's Investors Service said it published the rating results for banks in Brazil, as part of the planned application of its joint default analysis and its updated bank financial strength rating methodologies.

The updated methodology has benefited the ratings of most of the Brazilian banks rated by Moody's. Relatively benign operating and regulatory environment combined with specific franchise and financial developments resulted in upgrades of one to two notches, the agency said. The bank financial strength ratings of four banks were upgraded by three notches to reflect the positive franchise and financial metrics trends, when compared to global peers, the agency said.

The banks and ratings affected include:

Banco do Brasil SA's bank financial strength rating is changed to C from D, local-currency deposit ratings are affirmed at A1/prime -1, foreign-currency deposit ratings are unchanged at Ba3/not-prime, foreign-currency bond rating for senior obligations is unchanged at Baa3, subordinated debt rating is affirmed at Ba1, long- and short-term national-scale ratings are affirmed at Aaa.br and BR-1.

Banco Bradesco SA's bank financial strength rating is changed to B- from C-, local-currency deposit ratings are affirmed at A1/prime -1, foreign-currency deposit ratings are unchanged at Ba3/not-prime, foreign-currency bond rating for senior obligations is unchanged at Baa3, subordinated debt rating is affirmed at Ba1, long- and short-term national-scale ratings are affirmed at Aaa.br and BR-1.

Banco Bradesco SA (Grand Cayman)s foreign-currency bond rating for subordinated obligations is affirmed at Ba1.

Banco Itaú SA's bank financial strength rating is changed to B- from C, local-currency deposit ratings are affirmed at A1/prime -1, foreign-currency deposit ratings are unchanged at Ba3/not-prime, foreign-currency bond rating for senior obligations is unchanged at Baa3, long- and short-term national-scale ratings are affirmed at Aaa.br and BR-1.

Cia Itauleasing de Arrendamento Mercantil's issuer rating assigned an A1 rating, local-currency debt rating is affirmed at A1, national-scale local-currency debt rating is affirmed at Aaa.br.

União de Bancos Brasileiros SA's (Unibanco) bank financial strength rating is changed to B- from C-, local-currency deposit ratings are affirmed at A1/prime -1, foreign-currency deposit ratings are unchanged at Ba3/not-prime, foreign-currency bond rating for senior obligations is unchanged at Baa3, subordinated debt rating is affirmed at Ba1, long- and short-term national-scale ratings are affirmed at Aaa.br and BR-1.

União de Bancos Brasileiros SA's (Unibanco Grand Cayman) foreign-currency bond rating for subordinated obligations is affirmed at Ba1.

Banco Votorantim SA's bank financial strength rating is changed to C- from D+, local-currency deposit ratings are upgraded to Baa1/prime-2 from Ba1/not-prime, foreign-currency deposit ratings are unchanged at Ba3/not-prime, foreign-currency bond rating for senior obligations is unchanged at Ba1, long-term national-scale rating is changed to Aaa.br from Aa1.br and the short-term national-scale rating is affirmed at BR-1.

Banco Votorantim Nassau Branch's foreign-currency bond rating is affirmed at Ba1.

Banco Citibank SA's bank financial strength rating is changed to C- from D+, foreign-currency deposit ratings remained unchanged at Ba3/not-prime, foreign-currency bond rating for senior obligations changed to Baa3 from Ba1.

Banco do Estado de São Paulo SA's (Grand Cayman)s foreign-currency bond rating for subordinated obligations is affirmed at Ba1.

Banco Industrial e Comercial SA's bank financial strength rating is changed to D+ from D-, local-currency deposit ratings are changed to Ba1/not-prime from Ba3/not-prime, foreign-currency deposit ratings are unchanged at Ba3/not-prime, foreign-currency bond rating for senior obligations is changed to Ba1 from Ba3, subordinated debt rating is changed to Ba2 from B2, long- and short-term national-scale ratings are changed to Aa2.br and BR-1 from A2.br and BR-2.

Banco BMG SA's bank financial strength rating is changed to D+ from D-, local-currency deposit ratings are changed to Ba1/not-prime from Ba3/not-prime, foreign-currency deposit ratings are unchanged at Ba3/not-prime, foreign-currency bond rating for senior obligations is changed to Ba1 from Ba3, long- and short-term national-scale ratings are changed to Aa2.br and BR-1 from A3.br and BR-2.

Banco Cruzeiro do Sul SA's bank financial strength rating is changed to D+ from D-, local-currency deposit ratings are changed to Ba1/not-prime from Ba3/not-prime, foreign-currency deposit ratings are unchanged at Ba3/not-prime, foreign-currency bond rating for senior obligations is changed to Ba1 from Ba3, subordinated debt rating is changed to Ba2 from B2 and long- and short-term national-scale ratings are changed to Aa2.br and BR-1 from A3.br and BR-2.

Banco Panamericano SA's bank financial strength rating is changed to D from D-, local-currency deposit ratings are changed to Ba2/not-prime from Ba3/not-prime, foreign-currency deposit ratings are unchanged at Ba3/not-prime, foreign-currency bond rating for subordinated obligations is changed to Ba3 from B2, long- and short-term national-scale ratings are changed to A1.br and BR-1 from A3.br and BR-2.

Banco Pine SA's bank financial strength rating is changed to D from D-, local-currency deposit ratings are changed to Ba2/not-prime from Ba3/not-prime, foreign-currency deposit ratings are unchanged at Ba3/not-prime, long- and short-term national-scale ratings are changed to A1.br and BR-1 from A3.br and BR-2.

Banco Schahin SA's bank financial strength rating is affirmed at D-, local-currency deposit ratings are affirmed at Ba3/not-prime, foreign-currency deposit ratings are unchanged at Ba3/not-prime, foreign-currency bond rating for subordinated obligations is raised to B1 from B2, long- and short-term national-scale ratings are changed to A2.br and BR-2 from A3.br and BR-2.

Banco Mercantil do Brasil SA's bank financial strength rating is changed to D from E+, local-currency deposit ratings are changed to Ba2/not-prime from B1/not-prime, foreign-currency deposit ratings are changed to Ba3/not-prime from B1/not-prime, foreign-currency bond rating for senior obligations changed to Ba2 from B1, subordinated obligations changed to Ba3 from B3, long- and short-term national-scale ratings are changed to Aa3.br and BR-1 from Baa2.br and BR-2.

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