S&P ups BicBanco

Standard & Poor's said it upgraded the global scale counterparty credit ratings to BB+/B from BB-/B and the Brazil national scale rating to brAA from brA- on Banco Industrial e Comercial SA (BicBanco). The ratings were removed from CreditWatch, where they were placed with positive implications in September.

The outlook is stable.

The upgrade reflects BicBanco's successful strategy in extending loans to middle-market corporations in Brazil, which results in a strong operating performance tested over different economic cycles, S&P said.

The ratings also consider the bank's relatively low market share in outstanding loans in the Brazilian financial system and the strong concentration of the bank in one business line, the agency said.

The bank's high operating margins, sound capitalization and good asset quality indicators counterbalance these weaknesses, S&P said.

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