BTG Pactual Cut to Junk by Moody's Following Esteves's Arrest
- Rating company keeps bank on review for further downgrades
- BTG bond yields soared following arrest of then-CEO last week
BTG Pactual SA’s Partners Take Control of the Bank
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Banco BTG Pactual SA had its credit grade cut to junk by Moody’s Investors Service on concern that the investment bank will struggle to keep enough cash on hand and maintain its franchise following the arrest last week of its founder Andre Esteves.
The ratings firm lowered its baseline credit assessment for the business, Grupo BTG Pactual SA’s main operating subsidiary, two levels to Ba2 from Baa3, according to a statement Tuesday. It made the same change for the firm’s long-term global local- and foreign-currency deposit ratings, placing the bank two levels below investment grade. The ratings remain on review for further downgrades.