Fitch revises Bradesco view to negative

Fitch Ratings said it revised its outlook for Banco Bradesco SA to negative from stable and affirmed the BB+ long-term local and foreign-currency issuer default ratings as well as the BB+ senior unsecured rating.

The agency also affirmed NCF Participacoes SA's long-term national rating at AA+(bra) with a stable outlook.

Bradesco's asset quality and profitability have weakened more than previously expected, Fitch said.

“The bank incurred a significant increase in payment delays on retail loans, mainly from unsecured loans in the low-income segment. This further pressured the bank's asset quality ratios, which had already been negatively affected by a specific corporate impairment. These factors culminated in additional provisions that, combined with a more limited credit appetite, compressed Bradesco's margins and profitability,” the agency said in a press release.

However, Fitch noted that Bradesco is acting to improve its ratios, but it stills the bank’s general expenses rising in 2024 and a real recovery will take until 2025.

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