S&P: Daycoval on positive watch

Standard & Poor's said it placed its ratings on Banco Daycoval SA on CreditWatch with positive implications, reflecting the benefits of an improved macroeconomic environment with better access to funding alternatives in Brazil's growing capital markets.

The agency said it expects the CreditWatch to be resolved in one month, after it further evaluates the bank's track record in credit origination, prospects for continued growth, risk management and corporate governance.

The ratings on Daycoval incorporate the challenge of a competitive environment and of growing its credit portfolio under good risk management to maintain profitability, S&P said, adding that these risk factors are tempered by the bank's position as an important player in its niche segment with a long track record and expertise, its strong asset quality indicators, despite lending expansion, higher funding diversification and stronger liquidity than its peers' and historically strong profitability.

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