Santander Brasil may face a downgrade by Moody's.
After downgrading the rating of the parent company in Spain, the agency is evaluating the dependency relationship of the Brazilian subsidiary in order to overturn its classification.
The credit rating agency Moody's announced that it continues to analyze the ratings of Santander Brasil bank for a possible downgrade, the company said in a statement released this Friday. The review of the ratings began on February 24 of this year.
The rating of the Spanish controller was cut yesterday from Aa3 to A3, with a negative outlook. In total, Moody's has already revised downwards the ratings of 112 European banks in May alone, in addition to Spain's sovereign rating, which was cut by two notches.
"The current review of Santander Brasil's ratings will consider a global assessment by Moody's of the correlation between the bank's standalone credit profile and that of the sovereign where the bank is domiciled," states the note signed by analysts Ceres Lisboa and Maria Celina Vansetti-Hutchins.
The Brazilian bank had assets of 415,6 billion reais and shareholders' equity of 36,3 billion reais as of March 31. "The review will also include the links between the ratings of the parent company and the Brazilian subsidiary, which may affect Santander Brasil's local currency deposit ratings," the text emphasizes.
Santander's units (SANB11) have accumulated a 6% appreciation this year.