Fitch affirms Banco Votorantim

Fitch Ratings said it affirmed Banco Votorantim SA's BB+ foreign-currency and BBB- local-currency issuer default ratings, B foreign-currency and F3 local-currency short-term ratings, AA+(bra) long-term and F1+(bra) short-term national ratings, C/D individual rating and 3 support rating.

The outlook is stable.

The agency said the ratings reflect the moderate probability of support from the bank's ultimate parent, Votorantim Participacoes SA, in case of need. Banco Votorantim's foreign-currency issuer default rating is constrained by Brazil's country ceiling, and its local-currency issuer default rating is above Brazil's sovereign BB rating, both reflecting Fitch's opinion regarding the strength of Votorantim Participacoes.

The individual rating reflects Banco Votorantim's business focus, capacity to manage risks and modest revenue diversification, Fitch said, offset by the bank's concentration in funding and government securities and modest deterioration in the credit portfolio.

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