(The following statement was released by the rating agency)
NEW YORK/SAO PAULO, May 02 (Fitch) Fitch Ratings considers Banco
Spain's offer to buy the minority-held shares of its Brazilian
neutral to Santander Brasil's ratings.
Banco Santander Brasil S.A. (SanBrasil: Long-Term Foreign
Currency IDR rated
'BBB'; National Long-Term Rating 'AAA(bra)' by Fitch) announced
on April 29th an
offer by its Spanish parent, Banco Santander, to acquire the
(approximately 25%) of the shares that it does not already own
of its Brazilian
The Spanish parent's stated objectives for the proposed exchange
shares for shares of the parent include the unlocking of long
term value in the
Brazilian business, the increasing of the weight of the
Brazilian market, and
making a financially attractive offer to its shareholder bases.
Fitch views this announcement as having a neutral impact on the
ratings as, in
the short term, Fitch believes that this exchange does not
result in a change in
terms of the propensity for support of the bank and will not
have an immediate
impact on the bank's strategies for doing business in Brazil.
Also, this program
will require the approval of multiple regulators which is
expected by September.
Once approval is received, the share exchange is expected to be
the fourth quarter of this year. The minority shareholders that
do accept the
offer will own shares in the Spanish parent bank and receive
Fitch Ratings, Inc.
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New York, NY 10004
Media Relations: Elizabeth Fogerty, New York, Tel: +1 (212) 908
Additional information is available at 'www.fitchratings.com'.
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