TEXT-Fitch expects to rate Banco BTG Pactual S.A. senior unsecured notes 'BBB-(exp)'
Sept 12 - Fitch Ratings expects to assign a long-term foreign currency rating of 'BBB-(exp)' to Banco BTG Pactual S.A. (BTG Pactual) upcoming issue of senior unsecured notes with a maturity of five years in Colombian pesos (COP) and to be settled in U.S. dollars (USD).
The notes will be issued by BTG Pactual's Cayman branch; the amount of the notes and the interest rate will be set at the time of the issuance. Interest payments will be made semiannually and the principal will be paid at the maturity of the issuance. The notes are part of a global medium-term notes program of up to USD3 billion and its proceeds shall be used to enable new business generation.
The expected rating assigned to BTG Pactual's issuance corresponds to the bank's Fitch-rated Issuer Default Ratings (IDRs) ('BBB-'/Outlook Stable) and ranks equal with other senior unsecured debt.
BTG Pactual IDRs' are determined by its viability rating of 'bbb-', which reflects its strong franchise as a merchant bank in Brazil, success in the development of its activities, and its good earnings track record. It also considers the high quality and experience of its executives, its strong risk controls, tested during various crises, and its recurring earnings flow, which have consistently covered its fixed operational costs. However, ratings are constrained by the limited though increasing balance sheet and revenues diversification.
A larger and more diversified volume of business and revenue, which is already one of BTG Pactual strategic aims, may benefit its ratings in the medium and/or long term. On the other hand, the bank's ratings could be negatively impacted by large trading losses or by a deterioration on its asset quality and consequently on its capitalization.
Since 1983, BTG Pactual has been controlled by Andre Esteves, the main executive of UBS Pactual until 2008 and one of the controlling partners of the former UBS Pactual.
- Target stores' customers hit by major credit card attack
- UPDATE 3-Saab wins Brazil jet deal after NSA spying sours Boeing bid
- Facebook, Zuckerberg, banks must face IPO lawsuit: judge
- U.S. prosecutor defends treatment of Indian diplomat |
- Fed cuts bond buying in first step away from historic stimulus |