Fitch Ratings has affirmed Bank of America Brasil's national long-term rating at 'AAA(bra)' with a stable outlook, citing the bank's strategic importance to its US parent and continued support from the wider Bank of America group. The agency also affirmed the lender's short-term national rating at 'F1+(bra)'.
According to Fitch, the ratings reflect a high probability of support from the parent company if required, given the subsidiary's role in serving corporate and institutional clients in Brazil.
The agency said the bank's business model remains focused on wholesale banking, capital markets, trade finance and treasury services rather than retail operations.
Fitch added that the stable outlook mirrors its expectations for continued backing from the parent and no material change in the group's credit profile.
Fitch said Bank of America Brasil maintains capitalisation and liquidity levels consistent with its business profile while benefiting from conservative risk management.
The agency noted that any change in the subsidiary's ratings would likely be driven by a shift in its parent's ability or willingness to provide support, rather than by developments in the Brazilian operation itself.
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