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Strategies & Market Trends : Telebras (TBH) & Brazil -- Ignore unavailable to you. Want to Upgrade?

To: Steve Fancy who wrote (1675)	4/15/1998 12:41:00 PM
From: Steve Fancy	Respond to of 22640

Brazil shrs seen upbeat at open on rate cut hopes SAO PAULO, April 15 (Reuters) - Brazilian stocks were seen upbeat at Wednesday's open as investors pinned their hopes on the Central Bank announcing a cut in the monthly interest rate later in the day, brokers said. biz.yahoo.com

To: Steve Fancy who wrote (1675)	4/15/1998 12:43:00 PM
From: Steve Fancy	Respond to of 22640

Outlook for Brazilian banks is mostly stable-Mdy's Reuters, Wednesday, April 15, 1998 at 10:25 (Press release provided by Moody's Investors Service) NEW YORK, April 19 - "Despite our cautious view of the banking sector's future," Moody's Investors Service says in its study on Brazilian banks, "our outlook on the system's ratings is generally stable." In defense of its conclusion, Moody's cites ample provisioning and also points out the government's gradual financial liberalization and prudent regulation, as well as the system's relatively strong financial fundamentals, compared with those of other Latin American banks. The Brazilian banking industry's trend toward consolidation will continue, the rating agency believes, which will restructure the system positively over the long run"but will perhaps strain the credit quality of the weaker banks through the increased competition." Through 1998, Moody's financial strength ratings of Brazilian banks will be limited by the degree of prudential supervision and regulation introduced to boost the inadequate level of transparency of most institutions' disclosures. "The banks' financial strength standings must also withstand the considerable pressures on the already shaky asset quality and tight margins, which derive from the challenges of an economy in adjustment," the report adds. Moody's explains that "Brazil's economic volatility and contraction may hurt the banks' future performance." The rating agency also emphasizes that strength of the banking sector is highly correlated with the financially stronger private-sector banks, which have defensible business franchises. At present, Moody's rates 28 Brazilian banks. The financial strength ratings which exclude external supports--of these banks range from C+ to E, averaging D+. Copyright 1998, Reuters News Service