Fitch has revised the outlook on Brazilian mid-tier bank Banco Bonsucesso’s B+ to negative from stable. The agency cites lower profits and further pressures on the bank’s bottom line from new accounting rules. Spreads have also been hurt by higher funding costs, which impacted its core business of payroll deductible loans. . “Reduced dependency on payroll lending is important, but … competition in this segment is also intense and delinquency ratios there are greater, which could cause higher provisioning expenses,” the agency says. That said, Bonsucesso’s credit quality is slightly better than its peer average. Core capital/total risk weighted assets stand at around 11% and the agency expects ROE to be close to 10%.