SAO PAULO & RIO DE JANEIRO & NEW YORK--(BUSINESS WIRE)--Fitch Ratings has assigned Banco Daycoval S.A.'s (Daycoval) upcoming five-year USD senior unsecured notes an expected long-term foreign currency rating of 'BB'. The final rating is contingent upon the receipt of final documents conforming to information already received.
The notes, which will mature in 2016, will be issued for an amount to be determined and will carry a fixed interest rate set at the time of the issuance; interest payments will be made semiannually. The notes will be senior, unsecured liabilities of Daycoval and will rank simultaneously with all of the bank's other present and future unsecured and unsubordinated liabilities (other than those preferred by statute or by operation of law). This issuance is part of a Euro medium-term notes program of up to USD2 billion, and its proceeds shall be used to extend the bank's funding structure and to enable new business generation.
Daycoval's Issuer Default Ratings (IDRs) reflect its consistent track record of profitability, making it well-positioned regionally; its strong capitalization, which is better than its peers; and prudent management of liquidity, maintaining high liquid assets even in stressful times. Conversely, the ratings also factor in Daycoval's medium size, its consequent asset and liability concentrations, and the challenge of finding more diversified funding channels and revenue sources.
Incorporated in 1968, Daycoval is controlled by the Dayan family. Since 2007, its shares have been traded on the Sao Paulo Stock, Commodities, and Futures Exchange (BM&FBovespa).
Fitch currently rates Daycoval as follows:
--Long-term foreign currency IDR 'BB'; Outlook Stable;
--Long-term
local currency IDR 'BB'; Outlook Stable;
--Short-term foreign
currency IDR 'B';
--Short-term local currency IDR 'B';
--Individual
Rating 'C/D';
--Support '5';
--Support Floor 'No Floor';
--National
Long-term Rating 'A+(bra)'; Outlook Stable;
--National Short-term
Rating 'F1(bra)'.
In addition, Fitch assigned the following long-term foreign currency rating:
--USD300 million senior unsecured notes 'BB' (issued in March 2010).
Additional information available at www.fitchratings.com or www.fitchratings.com.br.
Applicable Criteria and Related Research:
--'Short-Term Ratings
Criteria for Corporate Finance' (Nov. 2, 2010);
--'Global Financial
Institutions Rating Criteria' (Aug. 18, 2010);
--'National Ratings:
Methodology Update' (Dec. 18, 2006).
Applicable Criteria and Related Research:
Short-Term Ratings for
Corporate Finance
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=568726
Global
Financial Institutions Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547685
National
Ratings - Methodology Update
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=305544
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