Fitch Expects to Rate Banco Pine S.A.'s BRL250MM Issuance of Letras Financeiras 'AA-(bra)'

  Fitch Expects to Rate Banco Pine S.A.'s BRL250MM Issuance of Letras
  Financeiras 'AA-(bra)'

Business Wire

SAO PAULO -- June 27, 2014

Fitch Ratings expects to assign Banco Pine S.A.'s (Pine) upcoming issue of
Brazilian Real denominated (BRL) Letras Financeiras a National Long-Term
rating of 'AA-(bra)'.

The amount of the issuance will be up to BRL 250 million. They will be sold in
a single series with a 2 years tenor and interest and principal will be paid
at maturity. The interest rate will be 119% over the DI (Depositos
Interfinanceiros) rate.

The net proceeds will be used by Pine for general banking purposes. The final
rating is contingent upon the receipt of final documents conforming to
information already received.

KEY RATING DRIVERS

The expected rating assigned to Banco Pine's new Letras Financeiras
corresponds to Fitch's Long-Term National Rating of 'AA-(bra)' with a Stable
Outlook for the bank and ranks equal with other senior unsecured debt.

Pine's National Long-Term rating reflects the bank's overall good credit
profile and good performance in the last several years in the midst of a
deteriorating and relatively volatile operating environment. Also, the rating
reflects Pine's consistent performance, higher funding diversification, and
sound asset quality and liquidity. Concentrations on the asset and funding
sides have been maintained at acceptable levels and ALM continues to be good.

RATING SENSITIVITIES

The potential for a rating upgrade is limited in the short term as the bank
needs to improve its income, asset and liability diversification. Ratings may
be negatively affected by continued asset quality deterioration which could
undermine its earnings and capital base.

A deterioration of the asset quality ratios to levels below its peers' average
or a decline in Fitch core capital to risk-weighted assets ratio below 10%,
along with a reduction in operating income to average asset ratio below 1.5%
could result in a negative rating review.

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).

Applicable Criteria and Related Research:

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

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=836915

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PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK:
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ON THE FITCH WEBSITE.

Contact:

Fitch Ratings
Primary Analyst
Eduardo Ribas, +55-11-4504-2213
Director
Fitch Ratings Brasil Ltda.
Alameda Santos, 700 - 7th floor -
Sao Paulo - SP - CEP: 01418-100
or
Secondary Analyst
Robert Stoll, +1 212-908-9155
Director
or
Committee Chairperson
Franklin Santarelli, +1 212-908-0739
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, New York
elizabeth.fogerty@fitchratings.com
 
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