Fitch Expects to Rate Itau Unibanco Holding's Tier II USD Sub Notes 'BBB(Exp)'

  Fitch Expects to Rate Itau Unibanco Holding's Tier II USD Sub Notes
  'BBB(Exp)'

Business Wire

NEW YORK -- November 05, 2012

Fitch Ratings expects to assign Itau Unibanco Holding S.A.'s (IUH) upcoming
2023 subordinated notes a rating of 'BBB(exp)'. The final rating is contingent
upon the receipt of final documents conforming to information already
received.

The notes will be issued by IUH's Grand Cayman branch. Principal will mature
in 2023, and interest payments will be made semi-annually. The notes, part of
a USD10 billion global medium-term note program, will carry a fixed interest
rate. The interest rate and principal amount should be set at time of
issuance. The net proceeds will be used by IUH for general corporate purposes.

The notes will rank at least equally with similar subordinated debt and carry
a cumulative coupon deferral mechanism that can be exercised if necessary. A
deferral will only occur if IUH is noncompliant with its regulatory capital
requirement.

As per Fitch's rating criteria, the expected rating of this Tier II
subordinated debt should be two notches below IUH's Viability Rating (VR) of
'a-', one notch lower due to Loss Severity features and its subordinated
status, and a one-notch deduction due to moderate risk of non-performance.
IUH's VR reflects Fitch's assessment of its high credit quality and strong
prospects for ongoing viability. The ratings also reflect IUH's broad and
diversified franchise, which is ranked among the leaders of various segments
of the Brazilian financial system. The ratings also consider IUH's track
record for solid performance, its robust risk controls, its ample liquidity
and greater diversification compared with local peers as a result of its
overseas presence.

Controlled by the Egydio de Souza Aranha and Moreira Salles families, IUH is
the largest private financial conglomerate in Brazil and Latin America. Its
main subsidiary, Itau Unibanco S.A., is one of Brazil's leading retail banks.

Additional information is available at 'www.fitchratings.com'. 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:

--'Rating Bank Regulatory Capital and Similar Securities' (Dec. 15, 2011);

--'Global Financial Institutions Rating Criteria' (Aug. 16,

2011);

--'Itau Unibanco Holding S.A. (Jan. 19, 2012).

Applicable Criteria and Related Research:

Rating Bank Regulatory Capital and Similar Securities

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=656371

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=686181

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Contact:

Fitch Ratings
Primary Analyst
Robert Stoll, +1 212-908-9155
Director
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
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Pedro Gomes, +55-11-4504-2600
Director
or
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Managing Director
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