Cruzeiro Troubles to Affect Peers: Moody's

Cruzeiro Troubles to Affect Peers: Moody's

Bonds Structured Finance Brazil Corporate & Sovereign Strategy

The recent government intervention in Brazil's Banco Cruzeiro do Sul could hurt funding costs and availability to the country's small and mid-sized banks, Moody’s says. It suggests that payroll-focused Banco BMG, Parana Banco and Banco Bonsucesso are among those likely to be the most affected, citing risk aversion as a factor. "Managements will be compelled to resize these banks’ operations to existing funding conditions, with a negative effect on business volumes and profitability,” the agency

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