Fitch Cuts BTG Pactual to Junk, Warns of Further Downgrades
- Fitch follows Moody's, S&P in downgrading lender this week
- Chairman Arida told clients bank is comfortable with liquidity
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Banco BTG Pactual SA was cut to junk by Fitch Ratings, the third downgrade this week for the largest independent investment bank in Latin America as it confronts the fallout from the arrest of its billionaire founder Andre Esteves.
Fitch cut the grade by three steps to BB-, citing the deterioration of the bank’s liquidity position and the damage caused by the arrest. The rating was kept on watch negative, which means more cuts could come, according to a statement Friday.