Research Update: Banco BTG Pactual Upgraded On National Scale To 'brAAA', Global Scale 'BB-/B' Ratings Affirmed; Outlook Stable

In our view, Brazilian investment bank Banco BTG Pactual's credit quality has improved in the past year because of its increased funding diversification, lower dependence on institutional investors, and a sharp increase in customer deposits thanks to its healthier franchise. We affirmed our 'BB-/B' global scale ratings on the bank, raised the long-term national scale ratings to 'brAAA' from 'brAA+', and affirmed the short-term ratings at 'brA-1+'. We also upwardly revised its stand-alone credit profile to 'bb' from 'bb-'. At the same time, we raised the long-term national scale ratings on Banco BTG Pactual's core subsidiaries, Banco Pan S.A. 'brAAA' from 'brAA+' and BTG Pactual Seguros S.A. to 'brAAA' from 'brAA+'. The outlooks on all rating scales are stable. We

...- In our view, Brazilian investment bank Banco BTG Pactual's credit quality has improved in the past year because of its increased funding diversification, lower dependence on institutional investors, and a sharp increase in customer deposits thanks to its healthier franchise. - We affirmed our '##-/B' global scale ratings on the bank, raised the long-term national scale ratings to 'brAAA' from 'brAA+', and affirmed the short-term ratings at 'brA-1+'. We also upwardly revised its stand-alone credit profile to '##' from '##-'. - At the same time, we raised the long-term national scale ratings on Banco BTG Pactual's core subsidiaries, Banco Pan S.A. 'brAAA' from 'brAA+' and BTG Pactual Seguros S.A. to 'brAAA' from 'brAA+'. - The outlooks on all rating scales are stable. - We expect Banco BTG Pactual to continue strengthening its funding profile in the next two years by increasing the share of retail and corporate customer deposits as it continues to deploy its digital banking strategy that...

Research Update