Fitch Places BTG Pactual Asset Management on Rating Watch Negative

SAO PAULO--(BUSINESS WIRE)-- Fitch Ratings has placed BTG Pactual Asset Management DTVM S.A.'s (BTG Pactual Asset) asset manager rating on Rating Watch Negative following the arrest of the CEO (who resigned on Nov. 29, 2015) and main shareholder of Banco BTG Pactual S.A. (BTG Pactual), Mr. Andre Esteves. Fitch also placed the credit ratings for BTG Pactual and its related entities on Rating Watch Negative on Nov. 26, 2015.

KEY RATING DRIVERS

The Rating Watch Negative reflects the risks from the possible business impact of assets under management outflows on BTG Pactual Asset as a result of this event. Fitch placed BTG Pactual and its related entities' credit ratings on Rating Watch Negative due to the possible impacts to its franchise and its wholesale funding nature.

BTG Pactual Asset's asset manager rating was affirmed on Aug. 11, 2015 at 'Highest Standards' based on its strong investment management platform and operational framework.

RATING SENSITIVITIES

Fitch could downgrade BTG Pactual Asset's asset manager rating if the current situation undermines the financial profile of its parent company, causes a severe decrease in AUM, or hampers its business franchise resulting in a material deterioration of its financial profile or its ability to continue to perform its activities appropriately. Significant turnover in investment personnel that negatively impacts BTG Pactual Asset's investment management capabilities may also result in a downgrade.

The ratings could be removed from Rating Watch Negative and Stable Outlook assigned if BTG Pactual Asset's business franchise exhibits resilience and is able to maintain relatively stable AUM levels and profitability.

BTG Pactual Asset's rating could be sensitive to relevant adverse changes to any of its rating drivers, particularly in case of a weakening of its financial profile, high turnover of key staff, or deterioration in processes and policies.

For additional information on Fitch's criteria for rating asset managers, consult the criteria mentioned below, available on Fitch's websites, at 'www.fitchratings.com' or 'www.fitchratings.com.br'.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria

Asset Manager Rating Criteria (pub. 06 May 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=747701

Relatￃﾳrio de Metodologia: Anￃﾡlise e Rating de Gestores de Recursos (pub. 04 Nov 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873367

Additional Disclosures

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=995566

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20151130006177/en/

Fitch Ratings
Primary analyst
Alexandre Yamashiro, CAIA
Director
+ 55-11-4504-2606
Fitch Ratings Brazil Ltda.
Alameda Santos, 700 - 7th floor
Cerqueira Cesar - Sao Paulo - SP
or
Secondary Analyst
Tiago Carrara
Analyst
+ 55-11-4504-2217
or
Tertiary analyst
Pedro Gomes
Director
+ 55-11-4504-2604
or
Committee Chairpearson
Davie Rodriguez, CFA
Senior Director
+1-212-908-0386
or
Media Relations:
Alyssa Castelli, +1-212-908-0540
[email protected]

Source: Fitch Ratings

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Notification of managers and closely related parties' transactions with A.P. Møller - Mærsk A/S shares
• Reckitt Announces Expiration and Results of Any and All Tender Offer and Consent Solicitation for Mead Johnson Nutrition Company Notes due 2044
• Form 8.5 (EPT/RI)-Gamma Communications Plc