Moody's downgrades BTG Pactual to speculative grade
Moody's credit rating agency downgraded BTG Pactual Bank's rating from investment grade to speculative. The bank credit score (rating) was downgraded to Ba2, second score for speculative grade, from Baa3, last investment grade rating. The agency placed the ratings of the BTG bank on review for downgrade last November 25th and reported today that the agency keeps the bank under analysis.
According to the agency, the decision reflected the challenges the bank faces to conserve liquidity (available resources) after the arrest of its former Chairman André Esteves. But the agency also said that the bank's diversified business platform could help mitigate the uncertainty surrounding the bank's future performance.
Probed under Operation Car Wash, André Esteves and Senator Delcídio do Amaral were arrested last Wednesday (Nov. 25), accused of causing obstruction to the investigation and trying to stop Petrobras former Director Nestor Cerveró to make a plea bargain. According to both arrest warrant, signed by the Prosecutor-General's Office, Amaral promised to pay a monthly $13,000 for Cerveró's family in case the former director did not make the plea bargain or did not mention the Senator and Esteves if sealing a deal. Esteves would cover the costs of the stipend.
Last weekend, Esteves resigned his posts of CEO and Board of Directors' Chairman of BTG Pactual and BTG Pactual Participations.
Translated by Amarílis Anchieta
Fonte: Moody's downgrades BTG Pactual to speculative grade
