...Tougher Times Ahead: Fitch Ratings believes that Brazilian banks should continue to face more pressured asset quality and increased impaired loans in 2015, which served as basis for the Negative Outlook assigned to the banking sector by Fitch in December 2013. The full effects have not been fully captured yet by first-quarter 2015 figures and pressure should continue. Other recent changes, such as the increase in the Social Contribution (CSLL), could alter the dynamics of banks' results, but with limited impact, in Fitch's view. Asset Quality Slightly Worse: Asset quality was the main negative factor behind 1Q15 results and this trend is expected to remain through year-end 2015. The pressures and concerns surrounding the corporate environment, as well as inflation and unemployment, which hit the retail sector, had a relevant effect on the Brazilian banks portfolio. The impairment ratio within the D-H rating category of the central bank's risk classification for the 21 banks covered in this...
