Fitch Rates Banco Santander (Brasil) S.A.'s BRL
NEW YORK -- May 2, 2013
Fitch Ratings currently rates Banco Santander (Brasil) S.A.'s (BSB) Brazilian
Real (BRL) senior unsecured notes that have a maturity of March 18, 2016 at
A reopening of this issuance for up to an additional BRL 500 million is to be
issued through BSB's Grand Cayman Branch. 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 on March 18,
The additional 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 USD7
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) (rated 'BBB'; Outlook Negative by
Fitch) 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'.
Applicable Criteria and Related Research:
--'Global Financial Institutions Rating Criteria' (Aug. 15, 2012).
Applicable Criteria and Related Research
Global Financial Institutions Rating Criteria
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Robert Stoll, +1 212-908-9155
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
Eduardo Ribas, +55-11-4503-2213
Franklin Santarelli, +1 212-908-0739
Jaqueline Carvalho, +55 21 4503 2623, Rio de Janeiro
Elizabeth Fogerty, +1 212-908-0526, New York
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