Fitch Places Bicbanco on Positive Watch on Acquisition Announcement

  Fitch Places Bicbanco on Positive Watch on Acquisition Announcement

Business Wire

SAO PAULO -- November 1, 2013

Fitch Ratings has placed Banco Industrial and Comercial S.A.'s (Bicbanco)
national ratings on Rating Watch Positive and removed the Negative Outlook on
the L-T National Rating as follows:

--Long-term National Rating 'A+(bra)';

--Short-term National Rating 'F1(bra)'.

The rating action follows the announcement made by Bicbanco and China
Construction Bank Corporation (CCB) (Long-term IDR rated 'A'; Stable Outlook;
Viability Rating 'bb' by Fitch) on Oct. 31 2013 regarding the agreement
whereby CCB would acquire a 72% stake in Bicbanco from its current controlling
shareholders.

The transaction is subject to necessary regulatory approvals in Brazil and
China. After the transaction is complete, CCB will request a tender offer to
acquire the remaining minority shares. Within the conditions of the
transaction, some of the subsidiaries of Bicbanco may be subject to a
corporate reorganization and possible spin-off.

KEY RATING DRIVERS

The Rating Watch Positive reflects Fitch's belief that once the acquisition is
complete, Bicbanco's ratings will benefit from support from CCB, should this
be required. CCB's IDR reflects Fitch's opinion that there is an extremely
high probability that the Chinese authorities will support CCB if needed. CCB
is 57% owned by the Chinese Government, and is an important player in the
Chinese banking system in addition to being the eighth largest bank in the
world.

Should the proposed acquisition be concluded, Bicbanco's national scale
ratings would be driven by the expected support from CCB, while the inclusion
of a highly rated institutional parent may also result in synergies and other
benefits that may enhance Bicbanco's business model. After the transaction is
completed, Fitch will assess the importance of Bicbanco for CCB and decide the
appropriate level of support to be applied to Bicbanco's ratings.

RATING SENSITIVITIES

The Rating Watch Positive will be resolved once regulatory approval for the
acquisition is received and the transaction is completed. Upon completion of
the necessary approvals, Bicbanco's Long-Term National Rating could be
upgraded reflecting CCB's propensity to support Bicbanco.

In the case the transaction is cancelled, Fitch will reassess the impact of
such situation to Bicbanco's ratings, which may result in a downgrade of the
bank if its franchise and funding position were to be affected by such event.

Additional information is available on www.fitchratings.com.

Applicable Criteria and Related Research:

--'Global Financial Institutions Rating Criteria' dated August 2012,

--'Rating FI Subsidiaries and Holding Companies' dated August 2012;

--'National Ratings Criteria' dated January 2011 .

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=806794

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Contact:

Fitch Ratings
Primary Analyst
Eduardo Ribas, +55 11 4504-2213
Associate Director
Fitch Rating Brasil Ltda.
Alameda Santos 700
Sao Paulo, Brazil
or
Secondary Analyst
Luiz Claudio Vieira, +55 21 4503-2617
Associate Director
or
Committee Chairperson
Franklin Santarelli, +1 212-908-0739
Managing Director
or
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elizabeth.fogerty@fitchratings.com
 
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