(The following statement was released by the rating agency)
NEW YORK, May 02 (Fitch) Fitch Ratings currently rates Banco
S.A.'s (BSB) Brazilian Real (BRL) senior unsecured notes that
have a maturity of
March 18, 2016 at 'BBB'.
A reopening of this issuance for up to an additional BRL 500
million is to be
issued through BSB's Grand Cayman Branch. Coupon payments will
be fixed and
determined on the pricing date based on a spread over Brazilian
interest payments will be made semi-annually until maturity on
March 18, 2016.
The additional notes will be settled in U.S. dollars (USD). The
notes are part
of a USD10 billion global medium-term note program of which
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) (rated 'BBB'; Outlook
Negative by Fitch)
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,
S.A. (SAN 'BBB+'; Outlook
Negative). BSB remains strategic for SAN, having contributed 26%
net income in 2012. BSB's VR reflects its healthy capital and
funding position supported by its growing franchise and
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
long-term IDR and that of its
parent is appropriate at this rating level. In addition, as the
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
niches, providing a broad and diversified asset base and revenue
by the deposit base and distribution capacity of one of Brazil's
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Applicable Criteria and Related Research:
--'Global Financial Institutions Rating Criteria' (Aug. 15,
Applicable Criteria and Related Research
Global Financial Institutions Rating Criteria
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