S&P ups Banco Votorantim

Standard & Poor's said it raised its foreign currency counterparty credit ratings on Banco Votorantim SA to BB from BB- following the upgrade of the foreign-currency rating on the Federative Republic of Brazil to BB from BB- and its local-currency rating to BB+ from BB.

The outlook is stable.

S&P said the counterparty credit ratings on Banco Votorantim SA incorporate the potential risks associated with the bank's treasury business, its exposure to sovereign risk through its government securities portfolio, a common issue for Brazilian banks and the risks associated with the volatile economic environment in Brazil that might cause asset quality deterioration.

The rating benefits from the implicit support of the Votorantim Group (BBB-/stable), the group's strong brand name and the bank's good profitability, the agency added.

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