Brazil-based midsize bank Banco Fibra S.A. is still struggling to grow its portfolio and maintain a stable operating revenue base in light of the tougher macroeconomic environment. Despite its net income losses, the bank has been gradually improving its operational results through higher net interest margins and better performance in its new loan portfolio, which is composed of loans originated after the implementation of the bank's revised business plan. We are affirming our 'B-' long-term and 'C' short term global scale credit ratings. We are also affirming our 'brB-'long term and 'brC' short term national scale ratings on the bank. The negative outlook reflects our view that the bank's financial profile could further deteriorate and pressure the bank's capital and
