Sao Paulo, June 20, 2011 -- Moody's Investors Service upgraded the foreign currency deposit ratings
and the foreign currency bond ratings of certain Brazilian banks.
These rating actions followed Moody's upgrade of Brazil's country ceilings
for foreign currency bonds and deposits announced on June 20, 2011.
This rating action does not reflect any strengthening of individual banks
or the Brazilian banking system.
The outlook on certain ratings was changed to stable from positive,
including: Banco Alfa de Investimento's foreign currency deposit
ratings, Banco Citibank's foreign currency deposit ratings,
Banco do Brasil (Cayman Branch)'s foreign currency junior subordinated
debt rating, Banco do Nordeste do Brasil's foreign currency
deposit ratings, Banco Safra's foreign currency senior unsecured
debt ratings, and Banco Votorantim's foreign currency subordinated
debt rating.
The outlook on all remaining foreign currency deposit and debt ratings
included in this rating action continued positive.
In a related move, Moody's upgraded the long-term foreign
currency subordinated bond ratings of Banco Bradesco S.A.
(Grand Cayman Branch), Banco do Brasil S.A. (Cayman
Branch), Banco Votorantim S.A, Itaú Unibanco
Holding S.A., Itaú Unibanco Holding S.A.
(Cayman Islands) and Itaú Unibanco S.A. (Cayman Branch).
These ratings remain on positive outlook constrained by the FC debt ceiling
which has a positive outlook.
The following ratings were upgraded:
Banco Alfa de Investimento S.A.:
Long-term foreign currency deposit rating: to Baa2 from Baa3,
with stable outlook
Banco Bradesco S.A.:
Long-term foreign currency deposit rating: to Baa2 from Baa3,
with positive outlook
Short-term foreign currency deposit rating: to Prime-2
from Prime-3
Long-term foreign currency senior unsecured debt rating:
to (P)Baa1 from (P)Baa2, with positive outlook
Banco Bradesco S.A. (Grand Cayman Branch):
Long-term foreign currency senior unsecured debt rating:
to (P)Baa1 from (P)Baa2, with positive outlook
Long-term foreign currency subordinated debt rating: to Baa1
from Baa2, with positive outlook
Banco Bradesco S.A. (New York Branch):
Long-term foreign currency senior unsecured debt rating:
to (P)Baa1 from (P)Baa2, with positive outlook
Banco Citibank S.A.:
Long-term foreign currency deposit rating: to Baa2 from Baa3,
with stable outlook
Banco do Brasil S.A.:
Long-term foreign currency deposit rating: to Baa2 from Baa3,
with positive outlook
Short-term foreign currency deposit rating: to Prime-2
from Prime-3
Long-term foreign currency senior unsecured debt rating:
to (P)Baa1 from (P)Baa2, with positive outlook
Banco do Brasil S.A. (Cayman Branch):
Long-term foreign currency senior unsecured debt rating:
to (P)Baa1 from (P)Baa2, with positive outlook
Short-term foreign currency senior unsecured debt rating:
to (P)Prime-2 from (P)Prime-3
Long-term foreign currency subordinated debt rating: to Baa1
from Baa2, with positive outlook
Long-term foreign currency junior subordinated debt rating:
to Baa1 from Baa2, with stable outlook
Banco do Nordeste do Brasil S.A.:
Long-term foreign currency deposit rating: to Baa2 from Baa3,
with stable outlook
Short-term foreign currency deposit rating: to Prime-2
from Prime-3
Banco Nacional de Desenvolvimento Econômico e Social -- BNDES:
Long-term foreign currency deposit rating: to Baa2 from Baa3,
with positive outlook
Short-term foreign currency deposit rating: to Prime-2
from Prime-3
Long-term foreign currency senior unsecured debt rating:
to Baa1 from Baa2, with positive outlook
BMF&Bovespa:
Long-term foreign currency senior unsecured debt rating:
to Baa1 from Baa2, with positive outlook
Banco Safra S.A.:
Long-term foreign currency deposit rating: to Baa2 from Baa3,
with positive outlook
Short-term foreign currency deposit rating: to Prime-2
from Prime-3
Long-term foreign currency senior unsecured debt rating:
to (P)Baa1 from (P)Baa2, with stable outlook
Banco Santander (Brasil) S.A.:
Long-term foreign currency deposit rating: to Baa2 from Baa3,
with positive outlook
Short-term foreign currency deposit rating: to Prime-2
from Prime-3
Long-term foreign currency senior unsecured debt rating:
to (P)Baa1 from (P)Baa2, with positive outlook
Banco Santander S.A. (Cayman Branch):
Long-term foreign currency senior unsecured debt rating:
to (P)Baa1 from (P)Baa2, with positive outlook
Banco Votorantim S.A.:
Long-term foreign currency deposit rating: to Baa2 from Baa3,
with positive outlook
Short-term foreign currency deposit rating: to Prime-2
from Prime-3
Long-term foreign currency senior unsecured debt rating:
to (P)Baa1 from (P)Baa2, with positive outlook
Short-term foreign currency senior unsecured debt rating:
to (P)Prime-2 from (P)Prime-3
Long-term foreign currency subordinated debt rating: to Baa1
from Baa2, with stable outlook
Banco Votorantim S.A. (Nassau Branch):
Long-term foreign currency senior unsecured debt rating:
to (P)Baa1 from (P)Baa2, with positive outlook
Short-term foreign-currency senior unsecured debt rating:
to (P)Prime-2 from (P)Prime-3
Caixa Econômica Federal:
Long-term foreign currency deposit rating: to Baa2 from Baa3,
with positive outlook
Short-term foreign currency deposit rating: to Prime-2
from Prime-3
HSBC Bank Brasil S.A. - Banco Múltiplo:
Long-term foreign currency deposit rating: to Baa2 from Baa3,
with positive outlook
Short-term foreign currency deposit rating: to Prime-2
from Prime-3
Long-term foreign currency senior unsecured debt rating:
to (P)Baa1 from (P)Baa2, with positive outlook
ING Bank N.V. -- São Paulo:
Long-term foreign currency deposit rating: to Baa2 from Baa3,
with positive outlook
Short-term foreign currency deposit rating: to Prime-2
from Prime-3
Itaú Unibanco Holding S.A.:
Long-term foreign currency issuer rating: to Baa1 from Baa2,
with positive outlook
Long-term foreign currency senior unsecured debt rating:
to (P)Baa1 from (P)Baa2, with positive outlook
Long-term foreign currency subordinated debt rating: to (P)Baa1
from (P)Baa2, with positive outlook
Itaú Unibanco Holding S.A. (Cayman Islands):
Long-term foreign currency senior unsecured debt rating:
to (P)Baa1 from (P)Baa2, with positive outlook
Long-term foreign currency subordinated debt rating: to (P)Baa1
from (P)Baa2, with positive outlook
Itaú Unibanco S.A.:
Long-term foreign currency deposit rating: to Baa2 from Baa3,
with positive outlook
Short-term foreign currency deposit rating: to Prime-2
from Prime-3
Long-term foreign currency senior unsecured debt rating:
to (P)Baa1 from (P)Baa2, with positive outlook
Itaú Unibanco S.A. (Cayman Islands):
Long-term foreign currency deposit rating: to Baa2 from Baa3,
with positive outlook
Long-term foreign currency senior unsecured debt rating:
to (P)Baa1 from (P)Baa2, with positive outlook
Long-term foreign currency junior subordinated debt rating:
to Baa1 from Baa2, with positive outlook
Banco Itaú BBA S.A.:
Long-term foreign currency deposit rating: to Baa2 from Baa3,
with positive outlook
Short-term foreign currency deposit rating: to Prime-2
from Prime-3
Long-term foreign currency senior unsecured debt rating:
to (P)Baa1 from (P)Baa2, with positive outlook
Banco Itaú BBA (Nassau Branch):
Long-term foreign currency senior unsecured debt rating:
to (P)Baa1 from (P)Baa2, with positive outlook
RATING RATIONALE
Moody's upgraded Brazil's foreign currency debt ceiling to Baa1 from Baa2
and lifted the nation's foreign currency deposit ceiling to Baa2 from
Baa3, all with positive outlook. For further detail,
please refer to Moody's press release "Moody's upgrades Brazil to
Baa2 from Baa3, retains positive outlook" dated June 20, 2011.
The agency noted that the actions on the deposit and bond ratings of the
banks have no effects on their financial strength ratings (BFSRs) or local
currency deposit ratings or their respective outlooks.
The last action on Banco Alfa de Investimento S.A. was on
July 21, 2010, when Moody's assigned the bank first
time rating.
The last rating action on Banco Bradesco was on May 10, 2011,
when Moody's assigned a Baa2 foreign currency debt rating to both the
3 and 5-year tranches senior unsecured notes issued by Banco Bradesco
S.A. through its Grand Cayman Branch.
The last rating action on Banco Citibank S.A. was on September
22, 2009, when Moody's upgraded the bank's long-term
foreign currency deposit rating to BaBaa1, in line with the upgrade
of Brazil's foreign currency deposit ceiling.
The last rating action on Banco do Brasil S.A. was on May
18, 2011, when Moody's assigned a Baa2 foreign currency debt
rating to subordinated unsecured notes issued by Banco do Brasil S.A.
through its Grand Cayman branch.
The last rating action on Banco do Nordeste do Brasil was on November
1, 2010, when Moody's assigned a Baa2 foreign currency
senior unsecured debt rating to its 5-year 3.625%
senior unsecured notes .
The last rating action on Banco Nacional de Desenvolvimento Econômico
e Social -- BNDES was on September 8, 2010, when Moody's
assigned a Baa2 long-term senior unsecured debt rating to the 7-year
4.240% senior unsecured notes.
The last rating action on BMF&Bovespa was on July 12, 2010,
when Moody's assigned a Baa2 foreign currency senior unsecured debt
rating to the10-year 5.5% senior unsecured notes.
The last rating action on Banco Safra was on May 9, 2011,
when Moody's assigned a Baa2 long-term and Prime-2
short-term foreign debt ratings to the existing US$5 billion
Global Medium Term Note Program and a Baa2 foreign currency debt rating
to the 3-year 3.5% senior unsecured notes issued
by Banco Safra S.A. under that program.
The last rating action on Banco Santander (Brasil) was on June 1,
2011, when Moody's assigned a Baa2 long-term foreign currency
debt rating to the 3.125% senior unsecured notes by Banco
Santander (Brasil) S.A. acting through its Cayman Branch.
The last rating action on Banco Votorantim was on May 10, 2011,
when Moody's assigned a Baa2 foreign currency debt rating to the 6.25%
BRL-denominated R$1 billion senior unsecured notes issued
by Banco Votorantim S.A..
The last rating action on Caixa Econômica Federal (CAIXA) was on
October 15, 2009, when Moody's downgraded Caixa Econômica
Federal (CAIXA)'s global long- and short-term local
currency deposit ratings to BAA1/Prime-2 from A1/Prime-1,
respectively, following the announcement of the change in systemic
support assumptions done by Moody's.
The last rating action on HSBC Bank Brasil S.A. was on May
4, 2011, when Moody's assigned a Baa2 long-term
and Prime-2 short-term foreign currency debt ratings to
its US$1 billion Global Medium Term Note Program issued by HSBC
Bank Brasil S.A. and to the 5-year 4% senior
unsecured notes issued under the program.
The last rating action on ING Bank N.V. (São Paulo)
was on September 22, 2009, when Moody's upgraded the
bank's long-term foreign currency deposit rating to BaBaa1 in line
with the upgrade of Brazil's foreign currency deposit ceiling .
The last rating action on Itaú Unibanco Holding S.A.
was on, June 14, 2011, when Moody's assigned a Baa2
foreign currency senior unsecured debt rating to 6.2% 10-year
subordinated notes issued by Itaú Unibanco Holding S.A.
through its Cayman Branch.
The last rating action on Itaú Unibanco was on March 19,
2010, when Moody's affirmed all ratings assigned to Itaú
Unibanco S.A. and to Itaú Unibanco S.A.
(Cayman Branch), maintaining the stable outlook on the BFSR,
local- currency global and national scale ratings, and the
positive outlook on the foreign currency deposit and debt ratings,
which are constrained by the country ceilings.
The last rating action on Banco Itaú BBA was on March 19,
2010, when Moody's affirmed all ratings assigned to Banco
Itaú BBA S.A. and to Banco Itaú BBA S.A.
(Nassau Branch), maintaining the stable outlook on the local-
currency global and national scale ratings, and the positive outlook
on the foreign currency deposit and debt ratings.
The principal methodologies used in these banks 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.
REGULATORY DISCLOSURES
Information sources used to prepare the credit rating are the following:
parties involved in the ratings, public information, confidential
and proprietary Moody's Investors Service's information.
Moody's Investors Service considers the quality of information available
on the issuer or obligation satisfactory for the purposes of assigning
a credit rating.
Moody's adopts all necessary measures so that the information it uses
in assigning a credit 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 ratings tab on the issuer/entity page on Moodys.com
for the last rating action and the rating history.
The date on which some Credit Ratings were first released goes back to
a time before Moody's Investors Service's Credit Ratings were fully digitized
and accurate data may not be available. Consequently, Moody's
Investors Service 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 the Credit Policy page on Moodys.com for the methodologies
used in determining ratings, further information on the meaning
of each rating category and the definition of default and recovery.
Sao Paulo
Ceres Lisboa
VP - Senior Credit Officer
Financial Institutions Group
Moody's America Latina Ltda.
JOURNALISTS: 800-891-2518
SUBSCRIBERS: 55-11-3043-7300
New York
M. Celina Vansetti
Senior Vice President
Financial Institutions Group
Moody's Investors Service, Inc.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's America Latina Ltda.
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Moody's upgrades FC ratings of some Brazilian banks
