Business: Fitch Upgrades Banco Pine S.A.

Fitch, the ratings agency, has upgdraded Banco Pine S.A. (Public, SAO:PINE4) in the following areas:

• Foreign and Local Currency Long-Term IDR upgraded to ‘BB-‘ from ‘B+’;
• Foreign and Local Currency Short-Term IDRs affirmed at ‘B’;
• Individual Rating upgraded to ‘C/D’ from ‘D’;
• Support Rating affirmed at ‘5’;
• Support Rating Floor affirmed at ‘NF’;
• National Long-Term Rating upgraded to ‘A(bra)’ from ‘A-(bra)’;
• National Short-Term Rating upgraded to ‘F1(bra)’ from ‘F2(bra)’.
• Rating Outlook revised to Stable from Positive.
• Foreign Currency Long-Term rating to ‘B’ from ‘B-/RR6’ of Pine’s USD125 million subordinated notes due Jan. 6, 2017.

Banco Pine S.A. is a Brazilian-based bank which specializes in, and focuses on corporate loans. The Bank offers a range of credit facilities, both in local and foreign currency. Banco Pine also offers financial and strategic advisory, treasury products, investment options, specialized credit lines and onlending.

On April 2, 2007, Pine became the first mid-sized bank to trade its shares on the São Paulo Stock Exchange (Bovespa), raising R$ 517 million through the issue of preferred shares.

Fitch said that the bank had “maintained prudent credit management and liquidity” expanding on Pine’s status:

“Pine’s funding base, less pressured by the discontinuity of payroll deductible loans since 2008, resumed growth along 2009. The deposit base, concentrated on institutional investors, increased a strong 107% in the year. Since 2007, when the bank issued equity in an IPO, Pine has sought to diversify its revenues and funding sources, with an aim at reducing the high concentration, which Fitch considers important. The bank’s issue of USD125 million subordinated debt in February 2010, with maturity within seven years, (considered as Tier II for regulatory purposes) allowed Pine to lengthen its funding base for medium-term growth. Pine’s asset/liability mix is well balanced, with concentration on relatively shorter corporate lending, and the increase in the average life of its liabilities”