S&P downgrades BRB's credit rating again and talks about 'growing uncertainty' about the bank's capital

BRB headquarters building in Brasília
Jornal Nacional/ Reproduction
S&P Global - a financial analysis and risk classification company - once again downgraded the credit rating of Banco de Brasília (BRB).
Now, the institution has moved from the brB- level to the "brCCC+/brC" level, lower on the scale. It is the second downgrade in less than three months - the previous level had been defined in March.
The statement released to the market speaks of "increasing uncertainty" and "execution risks associated with the bank's capitalization plan".
The "credit rating" takes into account the bank's general capacity to honor its obligations - that is, the soundness of the operations of that financial institution.
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According to the company's own manuals S&P, the "brCCC" rating means that BRB is:
currently "vulnerable to non-payment on other national obligations";
depending on favorable business and financial conditions for the debtor to honor its financial commitments relating to the obligation
"In the event of adverse business, financial or economic conditions, the issuer would likely not be able to honor its financial commitments relating to the obligation", says the S&P manual for this note. BRB from acquiring Master, which was blocked by the Central Bank.
➡ Since the Federal Police launched Operation Compliance Zero, in November 2025, directors of the two banks were arrested and removed.
➡ Master and other banks from the same conglomerate were liquidated by the Central Bank, while BRB - which has the Federal District government as its majority shareholder - has been delaying balance sheets and trying to obtain credit in the market to reestablish its assets.
In April, another global risk rating agency, Moody's, also downgraded BRB's rating. The note even spoke about the risk of default - that is, the risk of default.

Source: G1