S&P upgrades CCB Brasil

S&P said it raised the global scale long-term issuer credit rating on China Construction Bank (Brasil) Banco Multiplo SA (CCB Brasil) to BB from B+ and its national scale rating to brAA- from brBBB.

The agency also said it removed the ratings from CreditWatch developing, where they were placed in April 2016.

S&P also said it affirmed the B short-term issuer credit rating.

The outlook is negative.

The bank's stand-alone credit profile remains at CCC+.

The upgrades reflect a view that the bank has been gradually increasing its integration with its parent, China Construction Bank Corp., since the latter acquired the bank in 2014, S&P said.

The upgrades also consider the parent bank's continued strong commitments to CCB Brasil, the agency said.

The parent has been providing a high level support to its Brazilian subsidiary, including several rounds of capital injection, a large funding facility and placement of senior management of the subsidiary from China, S&P said.

The company's stand-alone assessment reflects its somewhat concentrated business profile given that the bank mostly lends to mid-sized and large corporations, the agency said.

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