July 19, 2013 / 4:16 PM / in 5 years

Fitch Assigns 'BBB' to Banco do Brasil's EUR700MM Senior Unsecured Euro Notes Due 2018

(The following statement was released by the rating agency) RIO DE JANEIRO, July 19 (Fitch) Fitch Ratings has assigned a long-term foreign currency rating of 'BBB' to Banco do Brasil S.A.'s (BdB) euro senior unsecured notes. The notes will be issued by Banco do Brasil's Grand Cayman branch under the USD5 billion global medium-term program. The amount of the notes totaled EUR700 million and the interest payments will be made annually. The principal will be paid at the maturity. The notes proceeds shall be used for general corporate purposes. KEY RATING DRIVERS The rating assigned to BdB's issuance corresponds to the bank's long-term foreign currency Issuer Default Rating (IDR) ('BBB'; Outlook Stable) and ranks equal with its other senior unsecured debt. BdB's IDRs are linked to the sovereign ratings of Brazil and reflect the federal government control and its systemic importance. The probability of the Brazilian government providing support to BdB is high, which explains its Support Rating of '2' and its Support Rating Floor of 'BBB'. The federal government has influence over the strategies of the bank, which is evidenced by BdB's role during the recent crisis, and in the governmental economic policies promoting the agribusiness development, and, more recently, in the widespread reduction in the domestic interest rates. RATING SENSITIVITIES BdB's IDRs and its issuance rating would be affected by potential changes in the sovereign ratings of Brazil and/or in its shareholders willingness to provide support. Fitch does not expect a change in the government's willingness to provide support over the rating horizon. Fitch currently rates BdB as follows: --Long-term foreign and local currency IDRs 'BBB', Outlook Stable; --Short-term foreign and local currency IDRs 'F2'; --Viability Rating 'bb+'; --Long-term national rating 'AAA(bra)', Outlook Stable; --Short-term national rating 'F1+(bra)'; --Support Rating '2'; --Support Rating Floor 'BBB'. Contact: Primary Analyst Paulo Fugulin Associate Director +55 11 4504-2206 Fitch Rating Brasil Ltda Alameda Santos 700 Sao Paulo, Brazil Secondary Analyst Maria Rita Goncalves Senior Director +55 21 4503-2626 Committee Chairperson Franklin Santarelli Managing Director +1-212-908-0739 Media Relations: Jaqueline Carvalho, Rio de Janeiro, Tel: +55 21 4503 2623, Email: jaqueline.carvalho@fitchratings.com; Elizabeth Fogerty, New York, Tel: +1 (212) 908 0526, Email: elizabeth.fogerty@fitchratings.com. Additional information is available at 'www.fitchratings.com'. Applicable Criteria and Related Research: --'Assessing and Rating Bank Subordinated and Hybrid Securities' (Dec. 15, 2012); --'Global Financial Institutions Rating Criteria' (Aug. 15, 2012); --'Rating FI Subsidiaries and Holding Companies' (Aug. 10, 2012); --'National Ratings Criteria' (Jan. 19, 2011). Applicable Criteria and Related Research: Assessing and Rating Bank Subordinated and Hybrid Securities here Global Financial Institutions Rating Criteria here Rating FI Subsidiaries and Holding Companies here National Ratings Criteria here Additional Disclosure Solicitation Status here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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