Bloomberg News

Cetip Heads to Biggest Decline in Four Months on Barclays Rating

March 12, 2012

Cetip SA - Mercados Organizados (CTIP3), Brazil’s largest securities clearinghouse, headed to its biggest drop in four months after Barclays Capital cut its recommendation on concern slower credit growth may hurt profit.

Shares fell 3.1 percent to 32.28 reais at 1:05 p.m. in Sao Paulo, the most on a closing basis since Oct. 24. The benchmark Bovespa index slid 0.7 percent.

“Prices do not seem to incorporate a scenario of a slowdown in credit growth,” Barclays’ analysts Henrique Caldeira and Roberto Attuch wrote in a note to clients today in which they lowered their rating on the stock to the equivalent of neutral. The central bank may take steps to curb consumer lending after cutting the benchmark borrowing rate, according to the analysts.

Central bank President Alexandre Tombini has lowered the overnight rate by 275 basis points, or 2.75 percentage point, since August, even as inflation forecasts increase. Consumer prices will rise 5.5 percent next year, up from an estimate of 5.2 percent the previous week, according to the median forecast in a March 9 central bank survey of about 100 economists published today. Brazil targets annual inflation of 4.5 percent, plus or minus two percentage points.

Barclays now rates Cetip stock “equalweight,” meaning the company is expected to perform in line with its peers.

To contact the reporter on this story: Ney Hayashi in Sao Paulo at

To contact the editor responsible for this story: David Papadopoulos in New York at

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