Moody's may cut Brazil banks

Moody's Investors Service said it placed on review for possible downgrade the ratings of BES Investimento do Brasil SA, Banif - Banco Internacional do Funchal (Brasil), SA and Banif Banco de Investimento (Brasil) SA.

The ratings on review include BES Investimento do Brasil's Ba1 long-term global local-currency deposit rating, long-term foreign-currency deposit rating and long-term foreign-currency senior unsecured debt rating as well as its Aa2.br long-term Brazilian national-scale deposit rating.

Banif - Banco Internacional do Funchal and Banif Banco de Investimento's B1 long-term global local-currency deposit and long-term foreign-currency deposit ratings and Baa1.br long-term Brazilian national-scale deposit ratings were also placed on review.

The rating actions follow the review for downgrade of the standalone credit assessments of Banco Espírito Santo SA and Banif - Banco Internacional do Funchal, SA, the agency said.

The review for downgrade will assess the implications of a potential downgrade of Banco Espírito Santo and Banif Portugal's standalone credit assessment to their subsidiaries in Brazil, particularly in respect to their funding dynamics and to the performance of recurring earnings, the agency added.

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