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TEXT-Fitch upgrades Banco Pine's ratings
2012年5月11日 / 下午5点53分 / 6 年前

TEXT-Fitch upgrades Banco Pine's ratings

May 11 - Fitch Ratings has taken the following rating actions on Banco Pine
S.A. (Pine):	
	
--Long-term foreign and local currency Issuer Default Ratings (IDRs) upgraded to
'BB' from 'BB-'; Outlook Stable;	
--Short-term foreign and local currency IDRs affirmed at 'B';	
--Viability rating upgraded to 'bb' from 'bb-';	
--Support rating affirmed at '5';	
--Support rating floor affirmed at 'NF';	
--Long-term national rating upgraded to 'A+(bra)' from 'A(bra)'; Outlook Stable;	
--Short-term national rating affirmed at 'F1(bra)';	
--Banco Pine S.A. USD 125 million Subordinated notes to 'B+' from 'B'.	
	
The upgrade on Banco Pine S.A.'s (Pine) foreign currency and local currency
Issuer Default Ratings (IDRs) and national ratings are based on the bank's
continued diversification of its funding profile and its good assets and
liabilities management. Pine's loan book portfolios are adequately matched with
its funding and presents a positive gap, which allied with a good liquidity
position evidences the bank's overall solid financial strength.	
	
Further rating uplift is limited unless structural changes towards income, asset
and liability diversification are achieved in a consistent manner. Ratings may
be negatively affected by continued asset quality deterioration that may
undermine its earnings and capital base.	
	
The ratings also reflect Pine's consistent improvements in the areas mentioned
above and its conservative approach towards risk management, which underpins its
strategic plan set out in 2008 of focusing on the lower end of the corporate
segment by continually expanding its client base and increasing client
penetration with a strong focus in cross-selling. The ratings also incorporate
the fact that as a midsized bank Pine presents assets and liabilities
concentrations and its income sources are still far from being diversified,
facts common to niche banks all over the world.	
	
Due to its profile as a midsized bank focused on corporate companies, Pine's
funding base (like those of its peers) is mostly concentrated in wholesale
funding. However, Pine's stability through the economic cycle and its variety of
funding options in hand makes the bank different from other players of a similar
size. As such, Pine procures its funding from time wholesale deposits (33% of
total funding and with no daily liquidity features as is common for several
Brazilian banks). It also maintains access to bilateral lending with banks
locally and abroad, multilateral funding and also, leverage on development funds
provided by BNDES. On a positive note, the bank still uses secured funding
facilities as DPGEs and domestic securitizations and loan sales although those
represent a smaller portion of its total funding	
	
Pine has been able to present satisfactory asset quality ratios and good
provisioning coverage. The portfolio is well diversified and largely covered by
collaterals, resulting in a below average ratio of ultimate loan losses and past
due loans normally below 1% of total loans. Risk controls have also consistently
been improved in order to cope with higher competition, the possible effects of
previous fast loan growth and lower expected economic activity in Brazil. In
keeping with industry trends, Fitch expects that Pine's asset quality may be
mildly affected by lower economic growth in 2012 as some deterioration was noted
in 2011 when both impaired loans and charge-offs increased in absolute terms.
Fitch also expects that Pine's income generation and current stock of reserves
should be enough to compensate such trend, without resulting on a deterioration
of its profitability and/or capital base.	
	
Although still relatively small compared to total operating earnings, fee income
has been sustainably improved in the last four years as a consequence of higher
client penetration and the offer or more value added services to its clients.
Worth mentioning, and especially in times when interest spreads are under
pressure within the industry, a successful expansion of non interest income will
be required to preserve current profitability levels and, ultimately, preserve
or expand current capital levels.	
	
The bank maintains a sound liquidity position, and its Fitch Core Capital and
Regulatory Capital (13.4% and 18.5% in December 2011, respectively) are in line
with its peers' average.	
	
Banco Pine S.A. is a midsized bank, which focuses in the upper-middle and low
corporate segments (companies with net sales exceeding BRL500 million). The bank
was founded in 1997, is controlled by Noberto Pinheiro, and has been listed on
the Sao Paulo Stock Exchange (Bovespa) since 2007.	
	
	
Additional information is available at 'www.fitchratings.com'. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.	
	
Applicable Criteria and Related Research:	
--'Global Financial Institutions Rating Criteria' (Aug. 16, 2011);	
--'National Ratings Criteria' (Jan. 19, 2011).	
	
Applicable Criteria and Related Research:	
Global Financial Institutions Rating Criteria	
National Ratings Criteria

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