Sept 14 2012 – (The following statement was released by the rating agency)

Sept 14 – Standard & Poor’s Ratings Services said today that it has assigned its ‘BBB’ debt rating to Banco do Brasil S.A.’s (BdB; BBB/Stable/A-2) proposed senior unsecured notes of YPN24.7 billion, which will have a maturity period of three years and will be issued by the bank acting through its Grand Cayman Branch.

The notes will be issued under the bank’s global medium-term note program, which has a limit of $5.0 billion.

The rating on the proposed notes is equalized with the long-term issuer credit rating on BdB and reflects our view that the notes will rank pari passu with other senior unsecured debt of the bank. We expect the notes to be the bank’s unsecured, unsubordinated, and unconditional obligations. The bank will use the proceeds for general banking purposes.

Our ratings on BdB reflect the bank’s “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.

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    BBB/Stable/A-2

Rating Assigned

Banco do Brasil S.A.

YPN24.7 billion sr unsec. notes  BBB

(Caryn Trokie, New York Ratings Unit)