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

miércoles 19 de marzo de 2014 09:02 GYT

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March 19 (Reuters) - (The following statement was released by the rating agency)

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.


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'.