Fitch affirms Redecard

Fitch Ratings said it affirmed Redecard SA's foreign- and local-currency issuer default ratings at BBB and long-term national scale rating at AAA(bra). Fitch also said it assigned an F1+(bra) short-term national scale rating to its proposed commercial paper program of up to R$1 billion with first tranche of R$500 million due in 330 days and second tranche of R$500 million due in 360 days.

The outlook is stable.

The ratings reflect the company's predictable revenue stream from a diversified base of affiliated merchants and strong presence in the Brazilian card payment industry, Fitch said.

Redecard also benefits from the support of its shareholder, Itau Unibanco Holding, SA and low leverage and solid liquidity, the agency said.

The company's main challenges are to maintain its market share, add to its volume of credit and debit transactions for Visa to offset potential volume losses from MasterCard, Fitch said, and maintain its relationships with its largest customers.

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