S&P gives Banco Mercantil Do Brasil notes B

Standard & Poor's said it assigned its B long-term senior unsecured debt rating to Banco Mercantil Do Brasil SA's $100 million senior unsecured notes issued in April, with final maturity in five years.

The ratings reflect the challenges of a midsize bank operating in the competitive Brazilian banking industry, the risk of potential asset quality deterioration and low profitability, compared with that of industry peers, which is negatively affected by the bank's large and costly operational structure and small scale, the agency added.

S&P said that these risk factors are partially offset by Banco Mercantil Do Brasil's tenure in and knowledge of its core/niche market, which translates into good regional market share and brand-name recognition.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.