S&P affirms Banco Mercantil

Standard & Poor's said it affirmed the B/B global-scale counterparty credit and brBBB- Brazilian national-scale ratings on Banco Mercantil do Brasil SA.

The outlook remains stable.

"The ratings on BMB reflect its weak operating performance, as its low profitability demonstrates," S&P analyst Marcelo Peixoto said in a statement.

"The ratings are also based on BMB's underutilization of its costly regional retail structure as well as the risky profile of its credit portfolio, which shows weaker-than-industry asset-quality ratios as measured by nonperforming loans."

Partially offsetting those risks are BMB's adequate liquidity and good funding profile, as the bank benefits from a rather stable flow of deposits from its retail network, with low dependence on institutional investors, the agency 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.