Moody's lowers Banco Fibra

Moody's Investors Service said it downgraded Banco Fibra SA's bank financial strength rating to D- from D.

The agency also downgraded the long-term global local and foreign currency deposit ratings to Ba3 from Ba2.

At the same time, Moody's said it downgraded Fibra's Brazilian national scale deposit ratings to A2.br and BR-2 from Aa3.br and BR-1, long- and short-term, respectively. The bank's long-term foreign currency subordinated debt rating was lowered to B1 from Ba3.

The Not Prime short-term global local and foreign currency deposit ratings were not affected. The outlook on all the ratings is stable.

Moody's said the downgrade of Fibra's standalone bank financial strength rating to D-, mapping to ba3 on the long-term scale, reflects Moody's view that the bank's business model remains under pressure due to the combination of declining profitability caused by high credit and operating costs, continuing contraction in the bank's market share for loans and deposits, weak asset quality indicators in the context of deceleration, also for consumer loan growth.

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