Fitch may lift Unibanco

Fitch Ratings said it placed the local-currency short- and long-term issuer default ratings and foreign-currency short-term issuer default rating of Unibanco-Uniao de Bancos Brasileiros SA. on Rating Watch positive.

The possible upgrade reflects a joint-venture agreement between Banco Itau Holding Financeira and Unibanco on Nov. 3.

The foreign-currency issuer default ratings are constrained by Brazil's country ceiling.

Ratings reflect the group's broad and diversified franchise, its deposit stability, a track record of conservative management with solid performance and its capacity to react promptly to fluctuations in the local economy, the agency said.

The long-term foreign-currency issuer default rating is constrained by Brazil's country ceiling, the agency noted.

Ratings also reflect low exposure to Brazilian government debt, its significant overseas presence and its ample international liquidity, which are important defenses against volatility, Fitch said.

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