OREANDA-NEWS. Fitch Ratings has placed BTG Pactual Asset Management DTVM S.A.'s (BTG Pactual Asset) asset manager rating on Rating Watch Negative following the arrest of the CEO (who resigned on Nov. 29, 2015) and main shareholder of Banco BTG Pactual S.A. (BTG Pactual), Mr. Andre Esteves. Fitch also placed the credit ratings for BTG Pactual and its related entities on Rating Watch Negative on Nov. 26, 2015.

KEY RATING DRIVERS
The Rating Watch Negative reflects the risks from the possible business impact of assets under management outflows on BTG Pactual Asset as a result of this event. Fitch placed BTG Pactual and its related entities' credit ratings on Rating Watch Negative due to the possible impacts to its franchise and its wholesale funding nature.

BTG Pactual Asset's asset manager rating was affirmed on Aug. 11, 2015 at 'Highest Standards' based on its strong investment management platform and operational framework.

RATING SENSITIVITIES
Fitch could downgrade BTG Pactual Asset's asset manager rating if the current situation undermines the financial profile of its parent company, causes a severe decrease in AUM, or hampers its business franchise resulting in a material deterioration of its financial profile or its ability to continue to perform its activities appropriately. Significant turnover in investment personnel that negatively impacts BTG Pactual Asset's investment management capabilities may also result in a downgrade.

The ratings could be removed from Rating Watch Negative and Stable Outlook assigned if BTG Pactual Asset's business franchise exhibits resilience and is able to maintain relatively stable AUM levels and profitability.

BTG Pactual Asset's rating could be sensitive to relevant adverse changes to any of its rating drivers, particularly in case of a weakening of its financial profile, high turnover of key staff, or deterioration in processes and policies.