Rating

Fitch Ratings

On August 31, 2023, the Fitch Ratings revised the Long-Term National Rating of Banese to ‘AA+(bra)’, Stable Outlook, after recalibrating its Correspondence Table of National Rating following the upgrade of Brazil’s Sovereign Rating. The National Short-Term Rating remains ‘F1+(bra)’. Banese’s domestic ratings reflect Fitch’s opinion that, if required, the bank would receive support from its controlling shareholder, the state of Sergipe, whose credit profile is evaluated by the agency internally. Fitch believes that Banese is strategically relevant for Sergipe, since it is the main financial agent of the local government and has a significant market share in credits and deposits in the state. According to the agency, the bank has a stable business model and adequate economic-financial indicators.

Moody’s Local BR Agência de Classificação de Risco Ltda. (“Moody’s Local”)

Moody’s Local BR Credit Rating Agency Ltd. (“Moody’s Local”) affirmed on October 20, 2023, the A+.br issuer rating, the A+.br long-term deposit rating, and the ML A-1.br short-term deposit rating, all with a stable outlook. These ratings take into account the significant deposit gathering by Banese from customers in the regional market of Sergipe (SE). The ratings reflect, among other factors, the persistence of pressures stemming from the increase in loan portfolio default at the Bank, which impact provisioning expenses, as well as non-recurring tax expenses. The ratings also incorporate the maintenance of relatively low capital levels compared to those practiced by the market.

Rating Agencies Classification