(The following statement was released by the rating agency)
Jan 9 - Fitch Ratings expects to assign a long-term foreign currency rating
of 'BBB-(exp)' to Banco BTG Pactual S.A.'s (BTG Pactual) upcoming issue of
senior unsecured notes with a maturity of seven years.
The notes will be issued by BTG Pactual's Cayman branch; the amount of the notes
and the interest rate will be set at the time of the issuance. Interest payments
will be made semiannually and the principal will be paid at the maturity of the
issuance. The notes are part of a global medium-term notes program of up to USD3
billion and its proceeds shall be used to enable new business generation.
The expected rating assigned to BTG Pactual's issuance corresponds to the bank's
Fitch-rated Issuer Default Ratings (IDRs) ('BBB-'; Outlook Stable) and ranks
equal with other senior unsecured debt.
BTG Pactual IDRs are determined by its viability rating of 'bbb-', which
reflects its strong franchise as a merchant bank in Brazil, success in the
development of its activities, and its good earnings track record. It also
considers the high quality and experience of its executives, its strong risk
controls, tested during various crises, and its recurring earnings flow, which
have consistently covered the bank's fixed operational costs. However, ratings
are constrained by the limited though increasing balance sheet and revenues
Further diversification of its business and revenue, which is already one of BTG
Pactual strategic aims, could benefit its ratings in the medium and long term.
On the other hand, the ratings could be negatively affected by large trading
losses or by deterioration in its asset quality or capitalization.
Founded in 1983, BTG Pactual is controlled by Andre Esteves, the main executive
of UBS Pactual until 2008 and one of the controlling partners of the former
Banco Pactual S.A.
(Caryn Trokie, New York Ratings Unit)