S&P: Brazil financial companies view to negative

Standard & Poor’s said it revised the global scale outlook on 11 Brazilian financial services companies to negative from stable following the same rating action on the Federative Republic of Brazil.

The agency also said it affirmed the long-term and short-term ratings on the entities and revised the national scale outlooks on 14 entities to negative from stable.

The negative outlooks were assigned to Banco Bradesco SA; Itau Unibanco Holding SA; Itau Unibanco SA; Banco Citibank SA; Banco do Brasil SA; Banco do Estado do Rio Grande do Sul SA; Banco Santander (Brasil) SA; Banco do Nordeste do Brasil SA; BM&FBovespa SA -Bolsa de Valores, Mercadorias e Futuros; Banco Nacional de Desenvolvimento Economico e Social; and Caixa Economica Federal.

The agency also said it revised the national scale outlook on Banco Volkswagen SA; Banco Bradesco SA; Bradesco Capitalizacao SA; Itau Unibanco Holding SA; Itau Unibanco SA; Banco BNP Paribas Brasil SA; Banco Citibank SA; Banco de Tokyo-Mitsubishi UFJ Brasil SA; Ativos SA Securitizadora de Creditos Financeiros; Banco do Estado do Rio Grande do Sul SA; Banco Morgan Stanley SA; Banco Santander (Brasil) SA; Banco Toyota do Brasil SA; and Banco do Nordeste do Brasil SA.

S&P said it believes the sovereign’s downside risks have increased. Despite the broad-based policy changes now underway, the global scale outlook revision on Brazil reflects higher execution risks stemming from political and economic fronts, the agency said.

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