Moody's Downgrades Brazil Banks On Nation's Negative Stance
Zacks Investment Research | Jun 01, 2017 08:57AM ET
Moody's Investors Service, the rating services arm of Moody's Corporation (NYSE:MCO) , downgraded outlooks assigned to 19 Brazilian banks, and the Brazilian stock and futures exchange – BM&FBovespa S.A – to negative from stable. The change in outlook followed the downgrade of Brazil's Ba2 government bond rating to negative from stable, last week. However, affected issuers' ratings and assessments were affirmed by Moody’s.
The outlook was revised by Moody’s on local currency deposit and/or foreign currency senior unsecured debt ratings of 15 domestically-owned banks having the same rating as of Brazil's sovereign rating. Moreover, outlook for four foreign-owned banks and BM&FBovespa was revised having rating above the sovereign rating.
Itau Unibanco Holding S.A. (NYSE:ITUB) , Banco Bradesco S.A. (NYSE:BBDO) , Banco do Brasil S.A. (OTC:BDORY) and Banco Santander (MC:SAN) (Brasil) S.A. (NYSE:BSBR) are among the 19 banks, outlooks of which were lowered by Moody's. Among these, Itau Unibanco carries a Zacks Rank #3 (Hold), while Banco Santander has a Zacks Rank #2 (Buy). You can see Zacks Investment Research
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