Fitch warns legislation could harm Brazilian banks

Fitch warns legislation could harm Brazilian banks

Regulation Economy & Policy

The Brazilian government is expected to pass legislation that could hurt the ratings of local banks by reducing sovereign support, Fitch Ratings said in a report. The new law could put downward pressure on Brazil's systemically important banks' support rating floors, which currently range from BB+ to BB-. Senior debt ratings will also be revised if the new law establishes that the debt class ranks below unsecured deposits, Fitch said. The bail-in mechanism, which will define the hierarchy of l

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