S&P rates Banco Daycoval notes B+

Standard & Poor's said it assigned its B+ foreign-currency long-term senior unsecured debt rating to Banco Daycoval SA's $120 million notes issued on Oct. 30.

The agency said that the issue matures in three years with semiannual payments of interest.

According to S&P, the counterparty credit rating on Banco Daycoval SA (B+/stable/B) incorporates the risk of a midsize bank operating in a highly competitive and volatile banking industry in Brazil and the challenge to maintain its strong profitability in the medium to long term considering the profile of its credit portfolio, mainly concentrated in the middle market.

Like other midsize banks, Banco Daycoval is also challenged to grow and diversify its funding given the natural concentration risk of its deposit base, the agency said.

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