Global Credit Research – 18 Jul 2013

Sao Paulo, July 18, 2013 — Moody’s Investors Service assigned a Baa1 foreign currency debt rating to senior unsecured notes to be issued by Banco do Brasil S.A. through its Grand Cayman Branch (BB Grand Cayman), under the existing US$5 billion Global Medium Term Note Program, rated (P)Baa1. The proposed notes will be denominated and settled in Euros. The notes, for a minimum amount of 500 million Euro, will be due in 2018. The outlook on the rating is positive, in line with the country ceiling for Brazil’s bonds.

Assignments:

Issuer: Banco do Brasil S.A., Cayman

Senior Unsecured Regular Bond, Assigned Baa1

RATINGS RATIONALE

The rating agency explained that the foreign currency senior unsecured debt rating derives from Banco do Brasil S.A. (BB)’s A3 supported deposit rating, which incorporates the bank’s standalone BFSR of C- (equivalent to baa2 in the global rating scale), and Moody’s assessment of the probability of systemic support to BB, reflecting its federal government ownership control and its dominant share of the deposits market in Brazil. At this rating level, BB Grand Cayman’s foreign currency bond rating is constrained by Brazil’s Baa1 country ceiling, and thus carries the positive outlook of the ceiling.

The unsupported baa2 credit assessment reflects BB’s relevant market positions in several key segments, including consumer lending, trade finance and agribusiness financing, and which have provided stable and recurrent earnings base. The rating also incorporates BB’s intrinsically domestic earnings base and its sizable exposure to government risk via government securities held by for liquidity purposes, despite the good level of overall business diversification. Moody’s noted that the bank’s robust loan growth over the past year, however, may yet affect its asset quality, as loans season.

In 1Q13, BB reported delinquencies at 2% of total loans, reflecting the strategic focus into lower risk consumer loans, such as payroll, housing and auto finance, that represented 75% of its total retail lending business. This portfolio mix has also benefited the bank’s record capital levels of 16.3% in March 2013, enhanced by the reduced risk-weighting factors on payroll, housing and corporate loans announced by regulators at the end of the quarter.

The last rating action on Banco do Brasil S.A., Grand Cayman Branch was on 2 October 2012, when Moody’s assigned Baa1 foreign currency senior unsecured debt rating to the 3.875% October 2020 senior unsecured notes. The outlook on the rating is positive.

The principal methodology used in this rating was Global Banks Methodology published in May 2013. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

Banco do Brasil S.A. is headquartered in Brasilia, Brazil and had total consolidated assets of R$1.2 billion (US$596.7 billion) and equity of R$62.1 billion (US$30.9 billion) as of 31 March 2013.

REGULATORY DISCLOSURES

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.

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 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.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Ceres Lisboa

VP – Senior Credit Officer

Financial Institutions Group

Moody’s America Latina Ltda.

Avenida Nacoes Unidas, 12.551

16th Floor, Room 1601

Sao Paulo, SP 04578-903 Brazil