S&P affirms Banco Santander

Standard & Poor's said it affirmed its BB+/B counterparty credit rating on Banco Santander Banespa SA.

The outlook is positive.

The ratings on Santander Banespa are supported by the bank's improved stand-alone profile, its strong franchise in the South and Southeast regions of Brazil, and the adequate profitability and increasing revenue from its commercial operation, reflecting the successful implementation of its business model, S&P said.

The ratings also incorporate the benefits of belonging to Banco Santander Central Hispano SA (A/Stable/A-1+), the agency said.

These factors are partly mitigated by the exposure to the economic and industry risk of the local financial system, its challenges in boosting revenue from clients to dilute investment costs and improve the efficiency ratio and in increasing its retail market share in the Brazilian competitive banking industry, the agency said.

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