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Brazil Floods Could Take A Toll On Local Banks, Less So On Insurers, Report Says

    SAO PAULO (S&P Global Ratings) May 13, 2024-- Although it's too early to assess the full impact of recent extreme flooding on the state of Rio Grande do Sul's economy, S&P Global Ratings believes the damage will be material and could hurt the asset quality of Brazilian banks, but expects contained losses for local insurers, as discussed in a report published today, "Your Three Minutes In Banking: Brazil Floods Could Take A Toll On Local Banks, Less So On Insurers."

    We think there could be significant fallout for the state's agricultural sector, services industry, private property, and public infrastructure. We also anticipate risks for small and midsize enterprise loans, consumer loans, and credit cards.

    This report does not constitute a rating action.

    The report is available to RatingsDirect subscribers at www.capitaliq.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by sending an e-mail to research_request@spglobal.com. Ratings information can also be found on S&P Global Ratings' public website by using the Ratings search box at www.spglobal.com/ratings.

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