Gradual stabilization of its operational results, through higher net interest margin (NIM) and efficiency gains; and Better performance of its loan portfolio. Challenge to grow its portfolio amid tougher macroeconomic environment; Moderate capital levels; and High credit losses due to its legacy portfolio. The negative outlook for the next 12 months reflects S&P Global Ratings' view that Banco Fibra S.A.'s financial profile could further weaken, bearing down on its capital and liquidity position amid slow activity and challenging conditions in Brazil's economy. It also reflects the negative trend in the Banking Industry Country Risk Assessment (BICRA) economic and industry risk in Brazil and our belief that the bank could experience financial deterioration from pressures on the Brazilian banking system from
