Panamericano Shareholder Seen Selling Assets

Grupo Silvio Santos will likely need to sell significant assets to repay a BRL2.5bn loan it took to shore up Banco Panamericano, according to Fitch. The comments by the ratings agency are echoed by Henrique Meirelles, president of Brazil’s central bank, who says the holding company may sell off its stake in the Brazilian lender. Santos has issued a statement saying it does not intend to sell its stake in Panamericano, though Fitch points out the holding company has other assets it could sell to pay down the loan. Eike Batista has reportedly said that he would be interested in acquiring assets held by the Santos group. According to Fitch “the sale of significant assets will be necessary for the group to face its financial obligations.” Santos also owns a controlling stake in SBT, a Brazilian television network, along with several other interests. If Santos were to attempt to sell the Panamerican stake, it may need to look outside of Brazil for a buyer. According to a Fitch analyst, several of the larger Brazilian banks already have access to Panamericano’s market, which includes the vehicle, payroll discounted and consumer loans segments. Fitch downgraded Panamericano’s national long-term ratings to A- from AA+ with negative watch.