New York, March 08, 2012 -- Moody's Investors Service today affirmed all ratings of Banco Nacional
de Desenvolvimento Econômico e Social -- BNDES, including
the long- and short-term local currency issuer ratings of
A3 and Prime-2, and the long- and short-term
Brazilian national scale issuer ratings of Aaa.br and BR-1.
The outlook on these ratings is stable. At the same time,
Moody's affirmed BNDES's long-term foreign currency
senior unsecured debt rating of Baa1, and the long- and short-term
foreign currency deposit ratings of Baa2 and Prime-2. The
outlook on these ratings remain positive. In addition, Moody's
raised BNDES's unsupported baseline credit assessment (BCA) to Baa2
from Baa3.
Moody's also affirmed BNDES Participações S.A.
-- BNDESPAR's long-term global local currency senior
unsecured debt rating of A3, and long-term Brazilian national
scale senior unsecured debt rating of Aaa.br. The outlook
on both ratings is stable.
RATINGS RATIONALE
In affirming BNDES's A3 issuer rating, Moody's noted
the importance of the development bank as the primary provider of long-term
funding to the domestic market, and as an agent of government-directed
policies, which have resulted in growing presence in the credit
market over the past three years. BNDES's issuer and debt
ratings of A3 incorporate two notches of uplift from the bank's Baa2 standalone
baseline credit assessment.
BNDES's standalone credit assessment, in turn, was raised
to incorporate the view that the bank's fundamental financial performance
has become increasingly aligned to that of the government, which
has provided substantial funding and capital to enable BNDES to execute
its mandate of supporting government's policies, to a large
extent in the form of subsidized lending. In turn, BNDES
has become a critical contributor to the government's revenues in
the form of significant dividend distributions.
Nonetheless, Moody's notes that the bank's increasing
credit and equity exposures or its sponsorship of projects by individual
companies or corporate groups, some of which have been appointed
"national champions", has led to growing risk concentrations,
which may add volatility to earnings and particularly to the bank's
capital position in situations of stress.
The last rating action on BNDES was on July 13, 2011, when
Moody's assigned a Baa1 long-term foreign currency debt rating
to the CHF 200 million unsecured, unsubordinated notes issued by
BNDES.
The last rating action on BNDESPAR was on February 29, 2012,
when Moody's assigned an Aaa.br National Scale debt rating and
an A3 Global Local Currency Senior Debt rating to BNDESPAR's R$2.0
billion issuance of non-convertible debentures.
The principal methodologies used in these ratings were "Bank Financial
Strength Ratings: Global Methodology" published in February 2007,
and "Incorporation of Joint-Default Analysis into Moody's Bank
Ratings: A Refined Methodology" published in March 2007.
Moody's National Scale 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 ratings in that they are not globally
comparable to 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 ".mx" for Mexico. For further
information on Moody's approach to national scale ratings, please
refer to Moody's Rating Implementation Guidance August 2010 "Mapping Moody's
National Scale Ratings to Global Scale Ratings."
BNDES is headquartered in Rio de Janeiro, Brazil and it had assets
of R$624.8 billion (US$333.1 billion) as of
December 2011. BNDESPAR had total assets of R$110.7
billion (US$59 billion) as of December 2011.
The following ratings of Banco Nacional de Desenvolvimento Econômico
e Social -- BNDES were affirmed:
- Global Local Currency Issuer Ratings: A3 and Prime-2,
with stable outlook
- Long-term Foreign Currency Senior Unsecured Debt Rating:
Baa1, with positive outlook
- Foreign Currency Deposit Ratings: Baa2 and Prime-2,
with positive outlook
- Brazilian National Scale Issuer Debt Ratings: Aaa.br
and BR-1, with stable outlook
The following ratings of BNDES Participações S.A.
-- BNDESPAR were affirmed:
- Long-term Global Local Currency Senior Unsecured Debt
Rating: A3, with stable outlook
- Long-term Brazilian National Scale Senior Unsecured Debt
Rating: Aaa.br, with stable outlook
The Local Market analyst for this rating is Alexandre Albuquerque,
+55 (11) 3043-7356.
REGULATORY DISCLOSURES
Although this credit rating has been issued in a non-EU country
which has not been recognized as endorsable at this date, this credit
rating is deemed "EU qualified by extension" and may still
be used by financial institutions for regulatory purposes until 30 April
2012. Further information on the EU endorsement status and on the
Moody's office that has issued a particular Credit Rating is available
on www.moodys.com.
For ratings issued on a program, series or category/class of debt,
this announcement provides relevant 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 relevant 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 relevant 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.
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.
Please see Moody's Rating Symbols and Definitions on the Rating
Process page on www.moodys.com for further information on
the meaning of each rating category and the definition of default and
recovery.
Please see ratings tab on the issuer/entity page on www.moodys.com
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
for further information.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has
issued the rating.
Jeanne Del Casino
VP - Senior Credit Officer
Financial Institutions Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
M. Celina Vansetti
MD - Banking
Financial Institutions Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's affirms ratings of BNDES and BNDESPar
