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TEXT-Fitch affirms Portuguese Bank aubsidiaries;outlook negative
November 15, 2012 / 1:45 PM / in 5 years

TEXT-Fitch affirms Portuguese Bank aubsidiaries;outlook negative

RATING ACTION RATIONALE, DRIVERS AND SENSITIVITIES

The ratings of BPI and Caixa BI are equalised to those of their respective 100%-shareholders (Banco BPI and Caixa Geral de Despositos - CGD, both rated ‘BB+'/Negative/‘B’). Under Portugal’s corporate law, Banco BPI and CGD are liable for the obligations of their wholly owned subsidiaries.

The equalisation is driven by their high integration into their parent banks and the benefits of parent support. Fitch does not assign Viability Ratings to the two institutions as the agency considers that they cannot be viewed as independent entities.

The ratings of BPI and CaixaBI remain sensitive to any rating action on Banco BPI’s and CGD’s IDRs. The latter are sensitive to a change of Portugal’s sovereign rating (see “Fitch Upgrades CGD, Banco BPI and Millennium bcp’s VRs; Affirms IDRs”, dated 17 July 2012 at www.fitchratings.com).

The rating CGD’s commercial paper is equalised to the Short-Term IDR of CGD (‘B’) and is sensitive to movements in this rating.

BPI and Caixa BI are two of Portugal’s leading investment banks and their parents are two major Portuguese banks. Their activities are focused on investment banking, including corporate finance and equities, and private banking.

The rating actions are as follows:

BPI:

Long-term IDR affirmed at ‘BB+'; Negative Outlook

Short-term IDR affirmed d at ‘B’

Support Rating affirmed at ‘3’

CaixaBI:

Long-term IDR affirmed at ‘BB+'; Negative Outlook

Short-term IDR affirmed d at ‘B’

Support Rating affirmed at ‘3’

CGD North America LLC

Commercial Paper affirmed at ‘B’

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