Fitch cuts Votorantim viability

Fitch Ratings said it downgraded the viability rating of Banco Votorantim SA to bb- from bb and affirmed its foreign- and local-currency long-term issuer default ratings at BBB-, short-term foreign- and local-currency issuer default ratings at F3, support rating at 2, national long-term rating at AA+(bra), national short-term rating at F1+(bra) and senior debt at BBB-. BV Leasing Arrendamento Mercantil SA's first and second debentures issuances were affirmed at AA(bra). The outlook is stable.

The agency said the viability rating, which benefits from the ordinary support of Banco do Brasil in terms of liquidity and funding availability, has been downgraded due to the combination of a weak performance in 2011 and a leveraged capital base.

At the same time, Fitch expects the bank to revert this trend due to new management efforts to improve delinquency, especially in the vehicle financing segment, sometime after 2012.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.