Home Breadcrumb caret Investments Breadcrumb caret Market Insights Moody’s downgrades eight banks in Brazil Moody’s has downgraded Brazil’s stock exchange operator, BM&FBovespa, as well as eight banks, by one-to-three notches, reports Financial Times. By Staff | June 28, 2012 | Last updated on June 28, 2012 1 min read Moody’s has downgraded Brazil’s stock exchange operator, BM&FBovespa, as well as eight banks, by one-to-three notches, reports Financial Times. Read: Brazil moves up the ranks Votorantim, a Brazilian bank struggling due to its heavy exposure to the auto sector, was downgraded below Brazil’s sovereign rating because of poor financial performance and “prospects of ongoing challenges to its financial strength,” Moody’s said. While Brazil’s banking system has survived many internal crises, smaller lenders lack adequate funding as the economy slows. Read: Eye on emerging markets The country’s larger banks also face lower returns on equities because of tighter interest rate spreads and slower credit expansion. Read: Moody’s continues frenzy, 15 banks downgraded Staff The staff of Advisor.ca have been covering news for financial advisors since 1998. Save Stroke 1 Print Group 8 Share LI logo