S&P ups outlook to positive for 14 Brazilian entities

Standard & Poor's said it revised the outlook on its long-term foreign currency rating on 14 Brazilian entities to positive from stable, following the revision of the foreign currency outlook of Brazil to positive from stable.

Ratings affected include the BB- foreign currency ratings of Eletrobras-Centrais Eletricas Brasileiras SA, Localiza Rent a Car SA, MRS Logística SA, Banco do Brasil SA, Banco Citibank SA, Banco do Estado de Sao Paulo SA, Banco Itau SA, Banco Nacional de Desenvolvimento Economico e Social SA, Banco do Nordeste do Brasil SA, Banco Santander Brasil SA, Banco Santander Meridional SA, Banco Votorantim SA, HSBC Bank Brasil SA, and Unibanco-Uniao de Bancos Brasileiros SAF.

Also affected were the BB local currency ratings of Eletrobras-Centrais Eletricas Brasileiras SA, Banco Nacional de Desenvolvimento Economico e Social SA and Banco do Nordeste do Brasil SA.

The positive outlook on the local and foreign currency ratings of the sovereign-owned entities - Eletrobras Centrais Elétricas Brasileiras SA, Banco Nacional de Desenvolvimento Econômico e Social SA and Banco do Nordeste do Brasil SA - show that the credit quality of these entities should follow that of the sovereign, as S&P considers them to be closely integrated into the government and its finances and that there are strong incentives for the sovereign to support them.

The outlook on the local currency ratings of the financial institutions remains stable, reflecting S&P's current perception of industry and economic risks for the banking industry in Brazil.

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