SAO PAULO--(BUSINESS WIRE)--Fitch Ratings announced on Dec. 15, 2011 the revision of its criteria for assigning credit ratings to regulatory capital and similar securities issued by banks, which could result in the downgrade of securities in various countries worldwide. For this reason certain securities were placed on Rating Watch Negative (RWN) (for further information see the press release 'Fitch Publishes New Bank Regulatory Capital Rating Criteria; Places Many Securities on RWN', dated Dec. 15, 2011 available at www.fitchratings.com)
Among the main changes, is the determination of an anchor rating from which there will be a differentiation of the notching of the hybrid securities. Under most circumstances, the anchor rating will be a bank's Viability Rating (VR). Fitch's VRs reflect Fitch's assessment of a bank's risk of failing and exclude the potential provision of extraordinary sovereign support. Also changed is the number of notches that can take place depending on relative subordination and non-performance risk characteristics.
In the case of subordinated debt and other hybrid securities which were rated by Fitch and are still in circulation, the following ratings were placed on RWN, indicating that the existing ratings could be lowered in the near future according to the new methodology. The agency expects to resolve the RWNs during the first quarter of 2012.
Ratings placed on RWN today:
Itau Unibanco Holding S.A.
--USD1.0 billion subordinated issuance which matures 2020, Rating Watch Negative
--USD1.250 billion subordinated issuance which matures 2021, Rating Watch Negative
Ratings placed on RWN previously:
Itau Unibanco Holding S.A.
--USD500 million subordinated issuance which matures 2021, Rating Watch Negative
Banco Bradesco S.A.
--USD750 million subordinated issuance which matures 2019, Rating Watch Negative
--USD1.1 billion subordinated issuance which matures 2021, Rating Watch Negative
Banco Pine S.A.
--USD125 million subordinated issuance which matures 2017, Rating Watch Negative
Banco BMG S.A.
--USD250 million subordinated issuance which matures 2020, Rating Watch Negative
--USD300 million subordinated issuance which matures 2019, Rating Watch Negative
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Rating Bank Regulatory Capital and Similar Securities' (Dec. 15, 2011);
--'Global Financial Institutions Rating Criteria' (Aug. 16, 2011).
Applicable Criteria and Related Research:
Rating Bank Regulatory Capital and Similar Securities
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=656371
Global Financial Institutions Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=649171
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