Moody’s ups Banco BTG Pactual

Moody's Investors Service said it upgraded Banco BTG Pactual SA's long-term local currency deposit to Ba2 from Ba3 and senior unsecured medium-term note rating to provisional Ba2 from provisional Ba3.

The standalone baseline credit assessment was raised to ba2, from ba3.

At the same time, Moody's upgraded the bank's long-term national scale deposit rating to Aa2.br from A1.br.

BTG's long-term foreign currency deposit rating of Ba3, as well as short-term local and foreign currency deposit rating of NP and the short-term Brazilian national scale rating of BR-1, were affirmed.

The outlook is now negative(m), in line with the negative outlook on Brazil' sovereign ratings.

Moody's also upgraded BTG's Grand Cayman Branch's foreign currency senior unsecured debt rating to Ba2 from Ba3 and the subordinate debt rating to Ba3 from B1; BTG's Luxembourg Branch's preferred stock non-cumulative debt rating was upgraded to B2 (hyb) from B3 (hyb).

“The upgrade of BTG's ratings reflects the bank's move to a less complex business profile and resulting stabilization of its balance sheet, particularly funding and liquidity, and revenue generation,” the agency said in a news release.

“The rating action also incorporates Moody's expectation that its revenue mix and future growth potential are centered on more balanced business segments with contained risk taking in terms of market, credit and liquidity risks.”

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