Moody’s Slashes BRB to CCC+.br in Banco Master Fallout

Overview

• Following Thursday’s downgrade to CCC+.br, Moody’s kept BRB under review and warned the bank is likely near default without new capital.
• BRB told the Supreme Court it wants any assets recovered in the Master case, including from plea deals, reserved to repay its losses in a preventive move.
• District governor Celina Leão removed BRB personnel tied to the Master purchases after an outside audit by Machado Meyer and Kroll flagged irregular approvals.
• To shore up cash, BRB is weighing a Central Bank liquidity line of about R$300 million, seeks a R$4 billion FGC loan, and set an April 22 shareholder vote on a capital increase of up to R$8.86 billion.
• The bank missed the March 31 deadline to publish 2025 results due to a forensic audit into roughly R$12.2 billion in suspected fraudulent portfolios from Banco Master, exposing it to fines and possible regulatory action.