Fitch revises BTG Pactual to stable

Fitch Ratings said it affirmed the ratings of Banco BTG Pactual SA and its related parties: BTG Investments LP, Banco Pan SA, Brazilian Finance & Real Estate SA, Brazilian Mortgages Cia Hipotecaria and Brazilian Securities Cia de Securitizacao and of its holding company BTG Pactual Holding SA.

The outlook was revised to stable from positive.

Fitch said the outlook revision reflects a change in its view on the acquisition of BSI SA, a private bank headquartered in Switzerland, due to the significant deterioration in Brazil's operating environment, which is not expected to recover until late 2016. While the agency expects this transaction to bring sizable and stable fee revenue to the bank, enhancing recurring income and providing less volatile revenue streams to BTG Pactual, the current operating environment hinders the expected benefits that the integration of the BSI acquisition could provide.

As such, Fitch acknowledges that such benefits and the preservation of the bank's profitability and leverage may take longer than the normal timeframe implied by a positive outlook.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.