(The following statement was released by the rating agency)
NEW YORK, March 21 (Fitch) Fitch Ratings has assigned Banco ABC
(ABCBr) issuance of Brazilian Real (BRL) senior unsecured notes
with a maturity
of three years a rating of 'BBB-'.
The amount of the notes and the interest rate will be set at the
time of the
issuance. Interest payments will be made semi-annually until
principal and interest amounts will be settled in U.S. dollars
The notes are part of a USD3 billion global medium-term note.
The net proceeds
will be used by ABCBr for general corporate purposes.
The rating assigned to ABCBr's issuance corresponds to the
bank's Issuer Default
Rating (IDR) ('BBB-'; Outlook Stable) and ranks equal to other
Earlier this month Fitch took the following rating actions on
--Long-term foreign and local currency Issuer Default Ratings
(IDRs) upgraded to
'BBB-' from 'BB+'; Outlook Stable;
--Short-term foreign and local currency IDRs upgraded to 'F3'
--Viability rating upgraded to 'bbb-' from 'bb+';
--Support rating affirmed at '3';
--Long-term national rating upgraded to 'AA(bra)' from
--Short-term national rating affirmed at 'F1+(bra)'.
KEY RATING DRIVERS
The upgrade of ABCBr's foreign currency and local currency IDRs,
rating and long-term national ratings were based on the bank's
low risk profile,
which is underpinned by its low funding cost, sound risk
consistent profitability over the years even facing a fierce and
competitive environment. Over the last years, improvements
included a further
diversification of its funding profile leading to a stronger
liabilities management as it continues to expand its corporate
and middle market
operations. Its credit portfolios are conservatively matched
and continue to
show strong liquidity. Its continued high quality asset and
with its satisfactory profitability and capital adequacy
evidences the bank's
overall solid financial strength.
Established in 1989, ABCBr is a midsized wholesale bank, which
focuses in the
corporate (companies whose annual sales are above BRL 400
million) and middle
market segments (companies with net sales between BRL30 and
Banco ABC Brasil S.A. is approximately 58% controlled by Arab
Corporation and approximately 34% free float.
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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,
--'National Ratings Criteria' (Jan. 19, 2011);
--'Rating FI Subsidiaries and Holding Companies' (Aug. 10,
Applicable Criteria and Related Research
Global Financial Institutions Rating Criteria
National Ratings Criteria
Rating FI Subsidiaries and Holding Companies
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