S&P turns Brazil bank view to positive

S&P said it changed its outlook for Brazilian financial services issuers to positive from stable after a similar action on the sovereign. Additionally, it affirmed their ratings.

The institutions are: Banco Bradesco SA, Banco BTG Pactual SA, Banco do Brasil SA, Banco Nacional de Desenvolvimento Economico e Social, Banco Votorantim SA and Caixa Economica Federal.

In Wednesday’s revision to Brazil outlook, S&P said, “The positive outlook reflects signs of greater certainty about stable fiscal and monetary policy that could benefit Brazil's still-low GDP growth prospects. Continued GDP growth plus the emerging framework for fiscal policy could result in a smaller government debt burden than expected, which could support monetary flexibility and sustain the country's net external position.”

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