S&P lowers Banco BMG

Standard & Poor's said it lowered its long-term counterparty credit rating on Banco BMG SA to B+ from BB-. Similarly, Banco's senior unsecured debt has been lowered to B+ from BB-.

The outlook is stable.

The downgrade results from three months of increasing difficultly in attracting and retaining a stable and more diversified deposit base in the domestic market and fiercer competition in loan origination, the agency said.

These difficulties are partially offset by a well-defined strategy as a niche bank, strong execution benefiting from technology and distribution capabilities, solid growth in loan portfolio and profitability and maintenance of good asset quality.

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