Fitch Expects to Rate Banco do Brasil's Proposed CHF 200MM Sr. Unsecured Notes due June 2019 'BBB'

  Fitch Expects to Rate Banco do Brasil's Proposed CHF 200MM Sr. Unsecured
  Notes due June 2019 'BBB'

Business Wire

RIO DE JANEIRO -- November 26, 2013

Fitch Ratings has assigned an expected long-term foreign currency rating of
'BBB(EXP)' to Banco do Brasil S.A.'s (BdB) proposed CHF 200 million senior
unsecured notes due June 2019.

The fixed rate bond will be issued by BdB, acting through its Grand Cayman
branch under its USD5 billion medium-term notes program. The minimum expected
amount is CHF 200 million (USD220.4 million) with a 5.5 year of tenor maturing
June 2019. Final amount and interest will be defined upon book building. The
bonds proceeds shall be used for general corporate purposes. The final rating
is contingent upon the receipt of final documents conforming to the
information already received.

KEY RATING DRIVERS

The expected rating on the notes corresponds to BdB's long-term foreign
currency Issuer Default Rating (IDR) ('BBB'; Outlook Stable) and ranks equal
to 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 to the bank.

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';

--Long-term foreign currency rating on EUR 700 million senior unsecured notes
due 2018 'BBB'; Outlook Stable.

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 Scale Ratings Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=720082

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=809518

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ON THE FITCH WEBSITE.

Contact:

Fitch Ratings
Primary Analyst
Paulo Fugulin
Associate Director
+55 11 4504-2206
Fitch Rating Brasil Ltda
Alameda Santos 700
Sao Paulo, Brazil
or
Secondary Analyst
Maria Rita Goncalves
Senior Director
+55 21 4503-2626
or
Media Relations:
Elizabeth Fogerty, +1-212-908-0526 (New York)
elizabeth.fogerty@fitchratings.com
 
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