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

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

Business Wire

RIO DE JANEIRO -- July 19, 2013

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'.

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

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=695542

Global Financial Institutions Rating Criteria

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

Rating FI Subsidiaries and Holding Companies

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679209

National Ratings Criteria

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

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=797103

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PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK:
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Contact:

Fitch Ratings
Primary Analyst
Paulo Fugulin, +55 11 4504-2206
Associate Director
Fitch Rating Brasil Ltda
Alameda Santos 700
Sao Paulo, Brazil
or
Secondary Analyst
Maria Rita Goncalves, +55 21 4503-2626
Senior Director
or
Committee Chairperson
Franklin Santarelli, +1-212-908-0739
Managing Director
or
Media Relations
Jaqueline Carvalho, Rio de Janeiro, +55 21 4503 2623
jaqueline.carvalho@fitchratings.com
Elizabeth Fogerty, New York, +1-212-908-0526
elizabeth.fogerty@fitchratings.com
 
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