Bulletin: Banco BTG Pactual S.A.'s Planned Acquisition Of Controlling Share Of Banco Pan Won't Affect Credit Quality

SAO PAULO (S&P Global Ratings) April 7, 2021--S&P Global Ratings said today that Banco BTG Pactual S.A.'s (BTG; BB-/Stable/B) announcement that it has signed a definitive agreement to acquire 100% of the 26.8% shares that Caixa Economica Federal (Caixa; BB-/Stable/B) holds of Banco Pan S.A. (B+/Stable/B) won't immediately affect BTG's credit quality. Prior to the acquisition, BTG held a 45% share of Banco Pan, and afterwards, it will have about 72%, making BTG the sole controller of the bank. The acquisition will generate a goodwill amount of R$2.2 billion and won't significantly affect BTG's capitalization because its Tier 1 ratio will be about 14% and total Basel ratio will be about 16.5%, well above the regulatory minimums. Moreover, we do

...SAO PAULO (S&P Global Ratings) April 7, 2021--S&P Global Ratings said today that Banco BTG Pactual S.A.'s (BTG; ##-/Stable/B) announcement that it has signed a definitive agreement to acquire 100% of the 26.8% shares that Caixa Economica Federal (Caixa; ##-/Stable/B) holds of Banco Pan S.A. (B+/Stable/B) won't immediately affect BTG's credit quality. Prior to the acquisition, BTG held a 45% share of Banco Pan, and afterwards, it will have about 72%, making BTG the sole controller of the bank. The acquisition will generate a goodwill amount of R$2.2 billion and won't significantly affect BTG's capitalization because its Tier 1 ratio will be about 14% and total Basel ratio will be about 16.5%, well above the regulatory minimums. Moreover, we do not expect the transaction to affect our risk-adjusted capital ratio. The transaction will be completed upon the Brazilian authorities' approval. This report does not constitute a rating action....

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