Caixa Economica Federal

The stable outlook on Caixa for the next 12 months reflects the outlook on Brazil (BB-/Stable/B), and we expect the ratings on the entity to move in tandem with those on the sovereign. On a stand-alone basis, we expect Caixa to maintain stable asset quality metrics given its low-risk portfolio mix and keep its results-oriented strategy. However, despite its 'bb' stand-alone credit profile (SACP), Caixa's prominent economic and public policy status means that we equalize the ratings and default risk with those on the sovereign. We would likely raise the ratings on Caixa following a similar action on the sovereign ratings. We would likely lower the ratings on Caixa following a similar action on the sovereign ratings. We classify the

...In our view, Caixa continues to be a key government-related entity (GRE) for the sovereign because of its importance in the country's mortgage lending segment and its social role. Therefore, we equalize the ratings on the bank with those on the sovereign. Moreover, we believe the bank has played a key role during the coronavirus pandemic in Brazil. Since April 2020, Caixa Economica Federal (Caixa)has been helping the government deal with the economic fallout and social effects of COVID-19 through several countercyclical actions and by acting as a payment provider of the government to support families. As a result, we believe that Caixa continues to have a critical role for the government as one of the most important GREs in the country, and remains very important to the government's economic strategy. Good profitability in 2021 boosted by asset sales and focus on core business, supported by growth in residential mortgages. Caixa successfully concluded the IPO of its insurance unit and raised...

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