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Fitch Assigns Banco do Brasil's USD1B Senior Notes Due 2025 'BB' Final Rating
October 24, 2017 / 1:05 PM / 2 months ago

Fitch Assigns Banco do Brasil's USD1B Senior Notes Due 2025 'BB' Final Rating

(The following statement was released by the rating agency) RIO DE JANEIRO, October 24 (Fitch) Fitch Ratings has assigned Banco do Brasil S.A.'s (BdB) USD1 billion senior unsecured notes due January 2025 a final rating of 'BB'. The final rating is in line with the expected rating that Fitch assigned to the proposed debt on Oct. 18, 2017 (see "Fitch Expects to Rate Banco do Brasil's Proposed Senior Notes Due 2025 'BB'"). KEY RATING DRIVERS The final rating on the notes corresponds to BdB's Long-Term Foreign Currency Issuer Default Rating (IDR) (BB/Negative) and ranks equal to its other senior unsecured debt. BdB's IDRs are aligned with the sovereign ratings of Brazil and reflect the federal government control and the bank's systemic importance. The probability of the Brazilian government providing support to BdB is moderate, which explains its Support Rating of '3' and its Support Rating Floor of 'BB'. RATING SENSITIVITIES IDRS AND SENIOR DEBT BdB's IDRs and its issuance ratings would be affected by potential changes in the sovereign ratings of Brazil and/or in the sovereign's willingness to provide support to the bank, should the need arise. Fitch currently rates BdB as follows: --Long-Term Foreign and Local Currency IDRs 'BB', Outlook Negative; --Short-Term Foreign and Local Currency IDRs 'B'; --National long-term rating 'AA+(bra)', Outlook Negative; --National short-term rating 'F1+(bra)'; --Support Rating '3'; --Support Rating Floor 'BB'; --Senior unsecured notes due 2018, 2019, 2020 and 2022 'BB'; --Viability Rating 'bb-'. Contact: Primary Analyst Esin Celasun Director +55 21 4503 2626 Fitch Ratings Brasil Ltda. Praca XV de Novembro, 20 - 401 B Rio de Janeiro, RJ, Brazil Secondary Analyst Claudio Gallina Senior Director +55 11 4504 2216 Committee Chairperson Alejandro Garcia, CFA Managing Director +1-212-908-9137 Relevant Rating Committee Date: June 23, 2017 Media Relations: Benjamin Rippey, New York, Tel: +1 646 582 4588, Email: benjamin.rippey@fitchratings.com. Additional information is available on www.fitchratings.com Applicable Criteria Global Bank Rating Criteria (pub. 25 Nov 2016) here National Scale Ratings Criteria (pub. 07 Mar 2017) here Additional Disclosures Dodd-Frank Rating Information Disclosure Form here Solicitation Status here#solicitation Endorsement Policy here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEB SITE AT 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. DIRECTORS AND SHAREHOLDERS RELEVANT INTERESTS ARE AVAILABLE here. 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. Copyright © 2017 by Fitch Ratings, Inc., Fitch Ratings Ltd. and its subsidiaries. 33 Whitehall Street, NY, NY 10004. Telephone: 1-800-753-4824, (212) 908-0500. Fax: (212) 480-4435. Reproduction or retransmission in whole or in part is prohibited except by permission. All rights reserved. In issuing and maintaining its ratings and in making other reports (including forecast information), Fitch relies on factual information it receives from issuers and underwriters and from other sources Fitch believes to be credible. Fitch conducts a reasonable investigation of the factual information relied upon by it in accordance with its ratings methodology, and obtains reasonable verification of that information from independent sources, to the extent such sources are available for a given security or in a given jurisdiction. The manner of Fitch’s factual investigation and the scope of the third-party verification it obtains will vary depending on the nature of the rated security and its issuer, the requirements and practices in the jurisdiction in which the rated security is offered and sold and/or the issuer is located, the availability and nature of relevant public information, access to the management of the issuer and its advisers, the availability of pre-existing third-party verifications such as audit reports, agreed-upon procedures letters, appraisals, actuarial reports, engineering reports, legal opinions and other reports provided by third parties, the availability of independent and competent third- party verification sources with respect to the particular security or in the particular jurisdiction of the issuer, and a variety of other factors. Users of Fitch’s ratings and reports should understand that neither an enhanced factual investigation nor any third-party verification can ensure that all of the information Fitch relies on in connection with a rating or a report will be accurate and complete. Ultimately, the issuer and its advisers are responsible for the accuracy of the information they provide to Fitch and to the market in offering documents and other reports. In issuing its ratings and its reports, Fitch must rely on the work of experts, including independent auditors with respect to financial statements and attorneys with respect to legal and tax matters. Further, ratings and forecasts of financial and other information are inherently forward-looking and embody assumptions and predictions about future events that by their nature cannot be verified as facts. As a result, despite any verification of current facts, ratings and forecasts can be affected by future events or conditions that were not anticipated at the time a rating or forecast was issued or affirmed. The information in this report is provided “as is” without any representation or warranty of any kind, and Fitch does not represent or warrant that the report or any of its contents will meet any of the requirements of a recipient of the report. A Fitch rating is an opinion as to the creditworthiness of a security. This opinion and reports made by Fitch are based on established criteria and methodologies that Fitch is continuously evaluating and updating. Therefore, ratings and reports are the collective work product of Fitch and no individual, or group of individuals, is solely responsible for a rating or a report. The rating does not address the risk of loss due to risks other than credit risk, unless such risk is specifically mentioned. 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