...VR and SSR Aligned: Although Banestes S.A. ¡ Banco do Estado do Espfrito Santo's (Banestes) Issuer Default Ratings (IDRs) are driven by the potential for shareholder support, as captured in the Shareholder Support Rating (SSR) of 'bb-', the ratings are also underpinned by the institution's intrinsic strength, reflected in its Viability Rating (VR) of 'bb-'. The SSR reflects Fitch's view of the propensity and capacity of the State of Espfrito Santo, as controlling shareholder, to provide extraordinary support to the bank if needed. The National Ratings follow Fitch's assessment of the credit quality of the State of Espfrito Santo. Balance Sheet Mix Shifts Toward Liquidity: The total credit portfolio contracted 2.6% year over year (yoy) to BRL14.7 billion, while the commercial loan book expanded 3.8% yoy (+1.8% in six months) to BRL13.0 billion. Individuals represent 69.2% of commercial credit at BRL9.0 billion (+4.9% yoy) and corporates account for 30.8% at BRL4.0 billion (+1.4% yoy), with...
