Fitch Rates Banco do Brasil's Reopened 3.75% Euro Notes 'BBB'

  Fitch Rates Banco do Brasil's Reopened 3.75% Euro Notes 'BBB'

Business Wire

RIO DE JANEIRO -- March 19, 2014

Fitch rates the reopening of Banco do Brasil S.A.'s (BdB) senior unsecured
notes denominated in Euros 'BBB'. Under the US$5 billion global medium-term
program, the notes constitute a further issuance, and will form a single
series with BdB's EUR700 million notes, maturing July 25, 2018.

The notes will be issued by BdB's Grand Cayman branch. The amount of notes
will be defined upon bookbuilding. Interest payments will be made annually
with coupon rate of 3.75% per annum. The principal will be paid at the
maturity. The proceeds from this issuance are to be used for general corporate
purposes.

KEY RATING DRIVERS

The rating assigned to BdB's issuance corresponds to the Fitch's long-term
foreign currency IDR on the bank ('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's control and the bank's 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'.

RATING SENSITIVITIES

BdB's IDRs and the 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:

--'Global Financial Institutions Rating Criteria' (Jan. 31, 2014);

--'National Scale Ratings Criteria' (Oct. 30, 2013);

--'Assessing and Rating Bank Subordinated and Hybrid Securities' (Jan. 31,
2014).

Applicable Criteria and Related Research:

Assessing and Rating Bank Subordinated and Hybrid Securities Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=732137

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=732397

National Scale Ratings Criteria

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

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Contact:

Fitch Ratings
Primary Analyst
Paulo Fugulin, +55 11 4504-2206
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, +1 212-908-0364
Managing Director
or
Media Relations:
Jaqueline Carvalho, +55 21 4503 2623, Rio de Janeiro
jaqueline.carvalho@fitchratings.com
or
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com
 
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