Brazil's Banks Cut by S&P After Nation's Junk Rating Is Lowered
- S&P downgrades national scale ratings for 27 financial firms
- It still has negative outlook on the sovereign credit rating
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Banco do Brasil SA, Itau Unibanco Holding SA and Banco Bradesco SA were among more than two dozen Brazilian financial-services firms that had credit grades lowered by Standard & Poor’s because of a downgrade of the government’s debt.
S&P reduced global scale credit ratings on 17 companies and national scale ratings on 27 firms, with some banks affected under both measures, according to a statement Wednesday. Such ratings take into account the strength of a company’s country, triggering reviews and adjustments when sovereign grades move.