S&P ups outlook to positive for 16 Brazilian issuers

Standard & Poor's said it revised the outlook on its long-term foreign and local currency ratings on 16 Brazilian issuers to positive from stable, following the revision of the foreign and local currency rating outlooks on the Federative Republic of Brazil.

At the same time, S&P said it revised its outlook on the Brazil national-scale ratings to positive from stable, following the same action on the sovereign and the ratings on all issuers were affirmed.

"The positive outlooks on the financial services issuers reflect our perception of improvements in industry and economic risks for the banking industry in Brazil, including the country's reduction in fiscal vulnerability and external indebtedness," said S&P credit analyst Daniel Araujo.

An upgrade of the banks would depend not only on the upgrade of the sovereign, but also on the banks' intrinsic creditworthiness, especially as measured by the quality and sustainability of asset quality and profitability, according to S&P.

Affected ratings include Eletrobras - Centrais Elétricas Brasileiras SA's foreign currency corporate credit rating at BB and local currency corporate credit rating at BB+, Banco do Nordeste do Brasil SA's foreign currency counterparty credit rating at BB, local currency counterparty credit rating at BB+ and Brazil national-scale rating at brAA+, Banco Nacional de Desenvolvimento Econômico e Social's foreign currency counterparty credit rating at BB and local currency counterparty credit rating at BB+,

Banco Bradesco SA's foreign currency counterparty credit rating at BB+, local currency counterparty credit rating at BB+ and Brazil national-scale rating at brAA+, Banco Itaú SA's foreign currency counterparty credit rating at BB+, local currency counterparty credit rating at BB+ and brAA+, Banco Itaú BBA SA's foreign currency counterparty credit rating at BB+, local currency counterparty credit rating at BB+ and Brazil national-scale rating at brAA+,

Banco do Brasil SA's foreign currency counterparty credit rating at BB and local currency counterparty credit rating at BB, Banco Citibank SA's foreign currency counterparty credit rating at BB, local currency counterparty credit rating at BB and Brazil national-scale rating at brAA, Banco Santander Banespa SA's foreign currency counterparty credit rating at BB, local currency counterparty credit rating at BB and Brazil national-scale rating at brAA/positive/brA-1 brAA/stable/brA-1,

HSBC Bank Brasil SA's foreign currency counterparty credit rating at BB and local currency counterparty credit rating at BB, Banco Votorantim SA's foreign currency counterparty credit rating at BB, local currency counterparty credit rating at BB and Brazil national-scale rating at brAA, Unibanco - União de Bancos Brasileiros SA's foreign currency counterparty credit rating at BB and local currency counterparty credit rating at BB, Unibanco Asset Management - Banco de Investimento SA's Brazil national-scale rating at brAA,

Bradesco Seguros SA's Brazil national-scale rating at brAA+ and Brazil national-scale financial strength rating at brAA+, Bradesco Capitalização SA's Brazil national-scale rating at brAA+ and Itaú Seguros SA's Brazil national-scale rating at brAA+ and Brazil national-scale financial strength rating at brAA+.

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