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  ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.  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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