Ratings agency Fitch has downgraded Brazil’s Digimais bank, explicitly warning that a failure of the institution is a real possibility.
The move marks the clearest indication yet that the crisis surrounding Banco Master is spreading to other lenders in the Brazilian market.
Digimais, which is owned by a religious organization, faces heightened scrutiny as investors assess the breadth of the contagion.
The downgrade reflects deteriorating fundamentals and the growing risk that the instability at Banco Master could trigger broader liquidity pressures across the sector.
The development underscores the fragility of Brazil’s banking landscape amid the ongoing turmoil.
Market participants are now focused on whether regulators will intervene to contain the fallout or if further downgrades and defaults are imminent.