S&P Global downgrades BRB for the second time in less than three months
The risk rating agency S&P Global Ratings downgraded BRB's (Banco de Brasília) credit rating from "brB-/brB" to "brCCC+/brC". This is the second downgrade suffered by the institution in just over two months - the previous rating drop occurred on March 19, 2026.
The new downgrade reflects the growing uncertainty and operational complexity surrounding the bank's capitalization plan, estimated at between R$6 billion and R$8 billion. According to S&P, implementing these measures has become the institution's main challenge given the recently accumulated losses.
According to the report, BRB's deteriorating scenario was accentuated with Operation Compliance Zero, in November 2025. Since then, the bank has faced a series of challenges, including the purchase of fraudulent assets from Banco Master, investigations into the conduct of high-ranking executives, governance weaknesses, conflicts of interest and lack of transparency, with financial statements that have not been published since September 2025.
The agency warns that continuing investigations increases reputational risk, potentially compromising fundraising and prospecting for new business.
To try to reverse the situation, BRB is betting on a capitalization plan that involves an agreement with Quadra Capital for the monetization of assets, the securitization of the Federal District's (DF) active debt and a loan from the FGC (Credit Guarantee Fund) to the DF government.
However, S&P warns that these initiatives depend on a complex structure and are subject to legislative impasses and judicialization, especially in an election year with budgetary pressures in the Federal District. The report states that schedule mismatches or insufficient resources may increase the institution's risk of liquidation.
Despite the downgrade, the CreditWatch listing was changed from negative to "in development." This indicates that, although the risk is high, there is progress in capitalization initiatives.
For the rating to rise again, the bank will need to execute the capitalization "in a timely manner and in sufficient volume", according to the Agency, in addition to publishing its delayed financial statements and providing clarity on the impacts of ongoing investigations. On the other hand, if capitalization fails or new information further compromises solvency, further downgrades may occur.
Source: CNN