Moody’s: BESI Brasil outlook to developing

Moody's America Latina said it confirmed the B2 senior unsecured local currency debt rating and Ba2.br national scale debt rating on BES Investimento do Brasil SA (BESI Brasil).

The outlook was changed to developing from review for downgrade.

This action follows the Dec. 8 announcement of the sale of BESI Brasil's controller. Under this agreement, Novo Banco SA (B2 review for downgrade, E/ca review for upgrade) will sell its entire stake in Banco Espirito Santo de Investimentos SA (unrated) to Haitong Securities Co. Ltd. (unrated). BESI Brasil is 80%-owned by Banco Espirito Santo de Investimentos SA. The sale is now subject to regulatory approval.

The senior unsecured local currency debt rating derives from BESI Brasil's B2 global local currency deposit rating, which incorporates the bank's standalone baseline credit assessment of b2, according to the agency.

Moody’s said the outlook change follows the change in BESI Brasil's global local currency deposit rating outlook, which reflects the announcement that its controlling parent is to be acquired by one of the leading securities firms in China, reducing the risks that further negative developments at BESI Brasil's ultimate parent, Novo Banco, could have on the Brazilian subsidiary's franchise and strategy.

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