Fitch Rates Banco Santander (Brasil) S.A.'s BRL Senior Unsecured Notes 'BBB'

  Fitch Rates Banco Santander (Brasil) S.A.'s BRL Senior Unsecured Notes 'BBB'

Business Wire

NEW YORK -- March 11, 2013

Fitch Ratings has assigned Banco Santander (Brasil) S.A.'s (BSB) upcoming
issue of Brazilian Real (BRL) senior unsecured notes with a maturity of up to
five years a rating of 'BBB'.

To be issued through BSB's Grand Cayman Branch, the amount of the notes will
be up to BRL1,000,000,000, coupon payments will be fixed and determined on the
pricing date based on a spread over Brazilian Treasuries, and interest
payments will be made semi-annually until maturity. The notes will be settled
in U.S. dollars (USD).

The notes are part of a USD10 billion global medium-term note program of which
approximately USD6.4 billion is currently outstanding. The net proceeds will
be used by BSB for general corporate purposes. The rating assigned to BSB's
issuance corresponds to the bank's Issuer Default Rating (IDR) ('BBB'; Outlook
Negative) and ranks equal to other senior unsecured debt.

BSB's IDRs and National ratings are driven by BSB's current Viability Rating
(VR; 'bbb'), which is one notch below the VR of its Spanish parent, Banco
Santander S.A. (SAN; 'BBB+'; Outlook Negative). BSB remains strategic for SAN,
having contributed 26% of consolidated net income in 2012. BSB's VR reflects
its healthy capital and independent funding position supported by its growing
franchise and conservative lending strategy and risk controls.

The Rating Outlook on the Long-term IDR is Negative, reflecting the Outlook of
its parent company. Fitch believes a one-notch difference between BSB's
long-term IDR and that of its parent is appropriate at this rating level. In
addition, as the fourth largest bank in Brazil, and with a deposit market
share of 8% of deposits, it is highly likely that the Brazilian government
will provide support should it be required. As such, Fitch rates BSB's Support
Rating Floor 'BBB-'.

SAN controls approximately 75% of BSB. The bank has been actively growing its
local franchise and holds a solid position in retail and wholesale market
niches, providing a broad and diversified asset base and revenue stream,
backed by the deposit base and distribution capacity of one of Brazil's
leading branch networks.

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:

--'Global Financial Institutions Rating Criteria' (Aug. 15, 2012).

--'National Ratings Criteria' (Jan. 19, 2011).

Applicable Criteria and Related Research

Global Financial Institutions Rating Criteria

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

National Ratings Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=595885

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