S&P cuts BES Investimento

Standard & Poor's said that it lowered the global-scale ratings on BES Investimento do Brasil to BB+/B-1 from BBB-/A-3 and its national-scale credit rating to brAA+ from brAAA. The ratings remain on CreditWatch where they were placed with negative implications on Feb. 17.

The rating action follows the downgrade on BES Investimento's parent company Banco Espirito Santo de Investimento SA (BBB-/negative/A-3) and its parent Banco Espirito Santo SA (BBB-/negative/A-3) on March 31, which in turn followed the same action on Portugal (BBB-/negative/A-3) on March 29, the agency said.

The CreditWatch reflects the need to reassess the importance and role of the Brazilian subsidiary in the parent company's strategy going forward, the agency added. The financial standing of the Brazilian subsidiary is stable with favorable growth prospects.

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