Fitch Rates Banco Santander (Brasil) S.A.'s BRL Senior Unsecured Notes 'BBB'

Mon Mar 11, 2013 9:35am EDT

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(The following statement was released by the rating agency) NEW YORK, March 11 (Fitch) Fitch Ratings has assigned Banco Santander (Brasil) S.A.'s (BSB) upcoming issue of Brazilian Real (BRL) senior unsecured notes with a maturity of up to five years a rating of 'BBB'. To be issued through BSB's Grand Cayman Branch, the amount of the notes will be up to BRL1,000,000,000, coupon payments will be fixed and determined on the pricing date based on a spread over Brazilian Treasuries, and interest payments will be made semi-annually until maturity. The notes will be settled in U.S. dollars (USD). The notes are part of a USD10 billion global medium-term note program of which approximately USD6.4 billion is currently outstanding. The net proceeds will be used by BSB for general corporate purposes. The rating assigned to BSB's issuance corresponds to the bank's Issuer Default Rating (IDR) ('BBB'; Outlook Negative) and ranks equal to other senior unsecured debt. BSB's IDRs and National ratings are driven by BSB's current Viability Rating (VR; 'bbb'), which is one notch below the VR of its Spanish parent, Banco Santander S.A. (SAN; 'BBB+'; Outlook Negative). BSB remains strategic for SAN, having contributed 26% of consolidated net income in 2012. BSB's VR reflects its healthy capital and independent funding position supported by its growing franchise and conservative lending strategy and risk controls. The Rating Outlook on the Long-term IDR is Negative, reflecting the Outlook of its parent company. Fitch believes a one-notch difference between BSB's long-term IDR and that of its parent is appropriate at this rating level. In addition, as the fourth largest bank in Brazil, and with a deposit market share of 8% of deposits, it is highly likely that the Brazilian government will provide support should it be required. As such, Fitch rates BSB's Support Rating Floor 'BBB-'. SAN controls approximately 75% of BSB. The bank has been actively growing its local franchise and holds a solid position in retail and wholesale market niches, providing a broad and diversified asset base and revenue stream, backed by the deposit base and distribution capacity of one of Brazil's leading branch networks. Contact: Primary Analyst Robert Stoll Director +1-212-908-9155 Fitch Ratings, Inc. One State Street Plaza New York, NY 10004 Secondary Analyst Eduardo Ribas Senior Analyst +55-11-4503-2213 Committee Chairperson Franklin Santarelli Managing Director +1-212-908-0739 Media Relations: Jaqueline Carvalho, Rio de Janeiro, Tel: +55 21 4503 2623, Email: jaqueline.carvalho@fitchratings.com; Elizabeth Fogerty, New York, Tel: +1 (212) 908 0526, Email: elizabeth.fogerty@fitchratings.com. Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings. Applicable Criteria and Related Research: --'Global Financial Institutions Rating Criteria' (Aug. 15, 2012). --'National Ratings Criteria' (Jan. 19, 2011). Applicable Criteria and Related Research Global Financial Institutions Rating Criteria here National Ratings Criteria here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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