Sao Paulo, June 17, 2015 -- Moody's América Latina Ltda. has today affirmed at Baa2
the long-term global local currency issuer ratings assigned to
BNDES Participações S.A. (BNDESPAR),
a wholly-owned subsidiary of Banco Nacional de Desenvolvimento
Econômico e Social S.A. (BNDES, Baa2 negative).
Moody's also affirmed BNDESPAR's long-term global local currency
senior unsecured debt rating at Baa2, and its long-term Brazilian
national scale issuer and senior unsecured debt ratings of Aaa.br.
The long-term senior unsecured debt ratings assigned to a MTN Program,
of (P)Baa2 and Aaa.br, in the global and Brazilian national
scales, were also affirmed. The outlook on all ratings is
negative, in line with the negative outlook on BNDES, which,
in turn, follows the negative outlook on Brazil's government bond
rating.
The following ratings assigned to BNDESPAR were affirmed:
- Long-term Global Local Currency Issuer Rating: Baa2,
with negative outlook
- Long-term Global Local Currency Senior Unsecured Debt
Rating assigned to MTN Program: (P)Baa2, with negative outlook
- Long-term Global Local Currency Senior Unsecured Debt
Rating assigned to outstanding debentures: Baa2, with negative
outlook
- Long-term Brazilian National Scale Issuer Rating:
Aaa.br
- Long-term Brazilian National Scale Senior Unsecured Debt
Rating assigned to MTN Program: Aaa.br
- Long-term Brazilian National Scale Senior Unsecured Debt
Rating assigned to outstanding debentures: Aaa.br
RATINGS RATIONALE
Moody's said the affirmation of BNDESPAR's ratings is a direct consequence
of the affirmation of the Baa2 supported ratings of its 100% shareholder,
BNDES. For a detailed consideration of Moody's action on BNDES'
ratings, please refer to the press release dated 17 June 2015 "Moody's
affirms ratings assigned to Caixa and BNDES and assigns CR assessments
to two government-owned banks".
BNDESPAR's main role is to support the Brazilian capital markets through
minority and temporary equity investments in the corporate sector,
as well as investments in fixed income instruments. The agency's
investment portfolio has important holdings of domestic corporations including
Petrobrás, Vale, and Eletrobrás. In 2014,
BNDESPAR's reported net income of BRL2.9 billion, mostly
driven by a recovery in the value of income from equity investments,
which increased BRL2.2 billion year-over-year.
However, the company's total asset declined 15.5%
to BRL77.2 billion as a result of mark-to-market
adjustments in the investment portfolio of non-affiliated companies.
WHAT COULD CHANGE THE RATINGS
BNDESPAR is a 100%-owned subsidiary of BNDES, and,
as such its ratings are intertwined to the bank's supported ratings.
Positive or negative pressures on BNDESPAR's ratings would be linked
to those on the development bank's ratings.
METHODOLOGY USED & LAST RATING ACTIONS
The principal methodology used in these ratings was Government-Related
Issuers published in October 2014. Please see the Credit Policy
page on www.moodys.com.br for a copy of this methodology.
Moody's National Scale Credit Ratings (NSRs) are intended as relative
measures of creditworthiness among debt issues and issuers within a country,
enabling market participants to better differentiate relative risks.
NSRs differ from Moody's global scale credit ratings in that they are
not globally comparable with the full universe of Moody's rated entities,
but only with NSRs for other rated debt issues and issuers within the
same country. NSRs are designated by a ".nn"
country modifier signifying the relevant country, as in ".za"
for South Africa. For further information on Moody's approach to
national scale credit ratings, please refer to Moody's Credit rating
Methodology published in June 2014 entitled "Mapping Moody's National
Scale Ratings to Global Scale Ratings".
Moody's took its last rating action on BNDESPAR on 9 September 2014,
when Moody's changed to negative the outlook on BNDESPAR's
issuer and senior unsecured debt ratings following the change to negative
in the outlook for Brazil's sovereign bond ratings. All ratings
remained unchanged.
BNDESPAR is headquartered in Rio de Janeiro, Brazil, and had
total assets of BRL75.5 billion (USD23.6 billion) and total
equity of BRL64.7 billion (USD20.3 billion) as of 31 March
2015.
REGULATORY DISCLOSURES
Information sources used to prepare the rating are the following:
parties involved in the ratings, public information, and confidential
and proprietary Moody's information.
Moody's considers the quality of information available on the rated entity,
obligation or credit satisfactory for the purposes of issuing a rating.
Moody's adopts all necessary measures so that the information it uses
in assigning a rating is of sufficient quality and from sources Moody's
considers to be reliable including, when appropriate, independent
third-party sources. However, Moody's is not an auditor
and cannot in every instance independently verify or validate information
received in the rating process.
The rating has been disclosed to the rated entity or its designated agent(s)
and issued with no amendment resulting from that disclosure.
Please see the ratings disclosure page on www.moodys.com.br
for general disclosure on potential conflicts of interests.
Moody's America Latina Ltda. may have provided Other Permissible
Service(s) to the rated entity or its related third parties within the
12 months preceding the credit rating action. Please see the special
report "Services provided to entities rated by Moody's America Latina
Ltda." on our website www.moodys.com.br for
further information.
Entities rated by Moody's America Latina Ltda. (and the rated entities'
related parties) may also receive products/services provided by parties
related to Moody's America Latina Ltda. engaging in credit ratings
activities. Please go to www.moodys.com.br
for a list of entities receiving products/services from these related
entities and the products/services received. This list is updated
on a quarterly basis.
The date of the last Credit Rating Action was 09 September 2014.
Moody's ratings are constantly monitored, unless designated as point-in-time
ratings in the initial press release. All Moody's ratings are reviewed
at least once during every 12-month period.
For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides certain regulatory disclosures in relation
to the rating action on the support provider and in relation to each particular
rating action for securities that derive their credit ratings from the
support provider's credit rating. For provisional ratings,
this announcement provides certain regulatory disclosures in relation
to the provisional rating assigned, and in relation to a definitive
rating that may be assigned subsequent to the final issuance of the debt,
in each case where the transaction structure and terms have not changed
prior to the assignment of the definitive rating in a manner that would
have affected the rating. For further information please see the
ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.br.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this rating action, and
whose ratings may change as a result of this rating action, the
associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
Please see ratings tab on the issuer/entity page on www.moodys.com.br
for the last rating action and the rating history. The date on
which some ratings were first released goes back to a time before Moody's
ratings were fully digitized and accurate data may not be available.
Consequently, Moody's provides a date that it believes is the most
reliable and accurate based on the information that is available to it.
Please see the ratings disclosure page on our website www.moodys.com.br
for further information.
Please see Moody's Rating Symbols and Definitions on the Rating Process
page on www.moodys.com.br for further information
on the meaning of each rating category and the definition of default and
recovery.
The following information supplements Disclosure 10 ("Information
Relating to Conflicts of Interest as required by Paragraph (a)(1)(ii)(J)
of SEC Rule 17g-7") in the regulatory disclosures made at
the ratings tab on the issuer/entity page on www.moodys.com.br
for each credit rating:
Moody's was not paid for services other than determining a credit
rating in the most recently ended fiscal year by the person that paid
Moody's to determine this credit rating.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
Please see www.moodys.com.br for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com.br
for additional regulatory disclosures for each credit rating.
Alexandre Albuquerque
Asst Vice President - Analyst
Financial Institutions Group
Moody's America Latina Ltda.
Avenida Nacoes Unidas, 12.551
16th Floor, Room 1601
Sao Paulo, SP 04578-903
Brazil
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M. Celina Vansetti
MD - Banking
Financial Institutions Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Releasing Office:
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Brazil
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Moody's affirms BNDESPAR's issuer rating at Baa2
