Fitch: BMG on review

Fitch Ratings said it will conclude the BMG SA ratings review after receiving further details and projections regarding the establishment of the joint venture with Itau Unibanco SA in the consumer loan segment known as consignado.

After its approval and depending on the relevance of the potential impacts of this joint venture on BMG's capital ratios and profitability, the bank's ratings may be affected.

Fitch said it positively views this news, especially given the strong commitment by Itau Unibanco, which is evidenced by the Itau name on the joint venture and the extension of a funding line at competitive rates.

BMG expects to benefit from a substantial reduction in its operational costs as origination, monitoring, collection and other costs will be proportionally assumed by the joint venture, the agency added.

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