Oct 2 – Standard & Poor’s Ratings Services said today that it has assigned its ‘BBB’ debt rating to Banco do Brasil S.A.’s (BdB; foreign currency BBB/Stable/A-2; local currency BBB/Stable/–) proposed $500 million senior unsecured notes (rule 3(a)2), which will have a maturity period of 10 years.

The bank’s Grand Cayman branch will issue the notes and its New York branch will guarantee them.  

The rating on the proposed notes is the same as the long-term issuer credit rating on BdB and reflects our view that the notes will rank pari passu with the bank’s other senior unsecured debt.

We expect the notes to be BdB’s unsecured, unsubordinated, and unconditional obligations. The bank will use the proceeds for general banking purposes.

Our ratings on BdB reflect its “strong” business position, “adequate” capital and earnings, “adequate” risk position, and “adequate” funding and liquidity, compared with other banks in the Brazilian financial system (as our criteria define the terms). We equalize our issuer credit ratings on the bank with those on the sovereign, the Federative Republic of Brazil (foreign currency BBB/Stable/A-2; local currency A-/Stable/A-2), the bank’s main shareholder.

We expect the ratings on BdB to move in tandem with the foreign currency rating on Brazil. Given the bank’s stand-alone credit profile of  ‘bbb+’ and our assessment of “very high” likelihood of extraordinary sovereign support to BdB, any upgrade of the sovereign should be followed by a similar action on BdB. Negative pressures on the sovereign rating, or a material deterioration on the bank’s capital position causing us to see its capital and earnings factor as very weak, could lead to a downgrade.

For a complete credit rating rationale on Bdb, please see Banco do Brasil, published March 21, 2012.

RELATED CRITERIA AND RESEARCH — Banks: Rating Methodology And Assumptions, Nov. 9, 2011 — Group Rating Methodology And Assumptions, Nov. 9, 2011      — Banking Industry Country Risk Assessment Methodology And Assumptions, Nov. 9, 2011   — Bank Hybrid Capital Methodology And Assumptions, Nov. 1, 2011   — Rating Government-

Related Entities: Methodology And Assumptions, Dec. 9, 2010

RATINGS LIST Banco do Brasil S.A.   Issuer credit rating

Foreign currency  BBB/Stable/A-2    Local currency     BBB/Stable/– Banco do Brasil S.A.   $500M sr unsec.

Notes      BBB

Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com.

All ratings affected by this rating action can be found on Standard & Poor’s public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.