Strategy shift towards less risky business segments; Gradual improvement in its operational results, despite net income losses; and Good performance in its new loan portfolio. Struggle to grow its portfolio amid tougher macroeconomic environment; Moderate capital levels; and Still-high level of NPLs due to its legacy portfolio. The negative outlook for the next 12 months reflects our view that the bank's financial profile could further weaken, bearing down on the bank's capital and liquidity position amid slow activity and challenging conditions in Brazil's economy. It also reflects the negative trend in Brazil's BICRA Economic Risk and our belief that the bank could experience financial deterioration from pressures on the Brazilian banking system as a result of the impact of fiscal
