Fibra's asset quality has been improving as Brazil's economic recovery gains strength and the bank's low quality legacy loan portfolio shrinks. In our view, given current economic trends, it's less likely that credit losses could impair the bank's bottom-line results. In addition, we expect Fibra to post modest credit growth in the next two years, which would support stable capitalization levels, in our view. As a result, we're revising the outlook on our ratings on Fibra to stable from negative. We're also affirming our 'B-/B' global and 'brBBB-/brA-3' national scale ratings. The stable outlook for the next 12 months reflects our expectations that Fibra will maintain stable capital levels and an adequate level of liquid assets on its balance sheet.
