Brazil-based midsize bank, Banco Fibra continues to gradually stabilize its operational results through higher net interest margins, efficiency gains and better performance of its loan portfolio. However, the bank still faces a challenge to grow its portfolio and maintain a stable operating revenue base in Brazil's tougher macroeconomic environment. We're affirming our 'B-/C' global scale and 'brB-/brC' national scale ratings on the bank. The negative outlook reflects our view that the bank's financial profile could further deteriorate, pressuring its capital and liquidity position due to the negative trend in the Brazil BICRA economic risk as a result of the impact of fiscal and monetary tightening on our economic risk assessment of Brazil. SAO PAULO (S&P Global Ratings) March 15, 2017--S&P
