Fitch Expects to Rate Banco Santander (Brasil) S.A.'s CLF-Indexed USD Sr Unsecured Notes 'BBB+(exp)'

NEW YORK--()--Fitch Ratings expects to assign a rating of 'BBB+(exp)' to Banco Santander (Brasil) S.A.'s (BSB) upcoming issue of senior unsecured notes with a maturity of up to four years indexed to the Chilean inflation rate (Chilean Unidad de Fomento-CLF) and settled in U.S. dollars.

The notes will be issued through BSB's Grand Cayman Branch; the amount of the notes and the interest rate will be set at the time of the issuance. Principal will mature in April 2016, and interest payments will be made semi-annually commencing in October 2012.

The notes are part of a USD10 billion global medium-term note program of which approximately USD4.1 billion is currently outstanding. The net proceeds will be used by BSB for general banking purposes. The final rating is contingent upon the receipt of final documents conforming to information already received.

The expected rating assigned to BSB's new issuance corresponds to the Fitch's Issuer Default Ratings (IDRs) for the bank and ranks equal with other senior unsecured debt.

BSB's long-term local currency IDR of 'A-', Negative Outlook, and its long-term foreign currency IDR of 'BBB+' are above the IDRs of Brazil, while the foreign currency IDRs are constrained by the country ceiling. BSB's IDRs are driven by the support Fitch expects BSB would receive from its parent, Spain's Banco Santander (SAN; long-term IDR rated 'A'; Outlook Negative by Fitch) due to the strategic importance of this subsidiary within SAN's global operations.

SAN controls approximately 76% of BSB, the third largest private retail bank in Brazil. The bank has grown its local franchise and holds a solid position in retail and wholesale market niches, providing a broad and diversified asset base and revenue stream, backed by the deposit base and distribution capacity of one of Brazil's leading branch networks.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Global Financial Institutions Rating Criteria' (Aug. 16, 2011).

Applicable Criteria and Related Research:

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=649171

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Contacts

Fitch Ratings
Primary Analyst
Robert Stoll
Director
+1-212-908-9155
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Edgard Dias
Associate Director
+55-11-4503-2600
or
Committee Chairperson
Peter Shaw
Managing Director
+1-212-908-0553
or
Media Relations, New York:
Brian Bertsch
+1-212-908-0549
brian.bertsch@fitchratings.com
or
Media Relations, Rio de Janeiro:
Jaqueline Carvalho
+55 21 4503 2623
jaqueline.carvalho@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Robert Stoll
Director
+1-212-908-9155
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Edgard Dias
Associate Director
+55-11-4503-2600
or
Committee Chairperson
Peter Shaw
Managing Director
+1-212-908-0553
or
Media Relations, New York:
Brian Bertsch
+1-212-908-0549
brian.bertsch@fitchratings.com
or
Media Relations, Rio de Janeiro:
Jaqueline Carvalho
+55 21 4503 2623
jaqueline.carvalho@fitchratings.com