Fitch: No Impact on Eight Foreign Owned Brazilian Banks from Rating Actions on Parents

The ratings for eight foreign owned Brazilian banks are not affected by the rating actions on their respective parents, according to Fitch Ratings. (For further details see the related press releases published May 19, 2015 and available at 'www.fitchratings.com'.)

The banks whose parents were reviewed are Banco Credit Agricole Brasil S.A. (BCAB), Banco de Investimento Credit Suisse (Brasil) S.A. (Bics), Banco Rabobank International Brasil S.A. (Rabobank), Bank of America Merrill Lynch - Banco Multiplo S.A. (BRBofAML), Deutsche Bank S.A. - Banco Alemao (DBSA), Banco Societe Generale Brasil S.A. (SGBr), and its two fully owned subsidiaries, Banco Cacique S.A. (Cacique) and Banco Pecunia S.A. (Pecunia).

The ratings of the eight foreign controlled banks operating in Brazil, BCAB, Bics, Rabobank, BRBofAML, DBSA, SGBr and its two fully owned subsidiaries (Cacique and Pecunia), are driven by the support from their parents, Credit Agricole Corporate and Investment Bank (Cacib, Issuer Default Rating (IDR) 'A'/Outlook Stable), Credit Suisse AG (CSAG, IDR 'A'/Outlook Stable), Rabobank Group (RBG, IDR 'AA-'/Outlook Negative), Bank of America Corporation (BAC, IDR 'A'/Outlook Stable), Deutsche Bank AG (DBAG, IDR 'A'/Outlook Negative) and Societe Generale (SG, IDR 'A'/Outlook Stable), respectively.

The banks' national ratings are not affected by the rating actions on their respective parents, since the parents' long-term IDRs remain three or more notches above Brazil's long-term Foreign Currency IDR of 'BBB'/Outlook Negative. SGBr, Cacique and Pecunia's Local and Foreign Currency IDRs are also not affected by the rating action on their parent, SG. The Negative Outlook on SG's three Brazilian subsidiaries' long-term IDRs mirrors the Negative Outlook on Brazil's sovereign rating.

In Fitch's opinion, these Brazilian subsidiaries are strategically important to their parents, due to their common branding, strong operating synergies and the high level of their management and commercial integration with the respective parents. Fitch believes that this group of banks would receive parental support, in case of need.

The following Brazilian banks' ratings remain unchanged:

BCAB

--Long-Term National Rating 'AAA(bra)', Outlook Stable;

--Short-Term National Rating 'F1+(bra)'.

Bics

--Long-Term National Rating 'AAA(bra)', Outlook Stable;

--Short-Term National Rating 'F1+(bra)'.

Rabobank

--Long-Term National Rating 'AAA(bra)', Outlook Stable;

--Short-Term National Rating 'F1+(bra)'.

BRBofAML

--Long-Term National Rating 'AAA(bra)', Outlook Stable;

--Short-Term National Rating 'F1+(bra)'.

DBSA

--Long-Term National Rating 'AAA(bra)', Outlook Stable;

--Short-Term National Rating 'F1+(bra)'.

SGBr

--Long-Term Foreign Currency IDR 'BBB+', Outlook Negative;

--Long-Term Local Currency IDR 'A-', Outlook Negative;

--Short-Term Foreign Currency IDR 'F2';

--Short-Term Local Currency IDR 'F1';

--Support Rating '2';

--Long-Term National Rating 'AAA(bra)', Outlook Stable;

--Short-Term National Rating 'F1+(bra)'.

Cacique

--Long-Term Foreign Currency IDR 'BBB+', Outlook Negative;

--Long-Term Local Currency IDR 'A-', Outlook Negative;

--Short-Term Foreign Currency IDR 'F2';

--Short-Term Local Currency IDR 'F1';

--Support Rating '2';

--Long-Term National Rating 'AAA(bra)', Outlook Stable;

--Short-Term National Rating 'F1+(bra)'.

Pecunia

--Long-Term Foreign Currency IDR 'BBB+', Outlook Negative;

--Long-Term Local Currency IDR 'A-', Outlook Negative;

--Short-Term Foreign Currency IDR 'F2';

--Short-Term Local Currency IDR 'F1';

--Support Rating '2';

--Long-Term National Rating 'AAA(bra)', Outlook Stable;

--Short-Term National Rating 'F1+(bra)'.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Bank Rating Criteria' (March 20, 2015);

--'National Rating Criteria' (Oct. 30, 2013).

Applicable Criteria and Related Research:

Global Bank Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=863501

National Scale Ratings Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=720082

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