(The following statement was released by the rating agency)
NEW YORK, March 11 (Fitch) Fitch Ratings has assigned Banco
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
will be made semi-annually until maturity. The notes will be
settled in U.S.
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
issuance corresponds to the bank's Issuer Default Rating (IDR)
Negative) and ranks equal to other senior unsecured debt.
BSB's IDRs and National ratings are driven by BSB's current
(VR; 'bbb'), which is one notch below the VR of its Spanish
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
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
provide support should it be required. As such, Fitch rates
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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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).
Applicable Criteria and Related Research
Global Financial Institutions Rating Criteria
National Ratings Criteria
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