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Fitch Expects to Rate Caixa Economica Federal's Senior Unsecured Notes 'BBB'

RIO DE JANEIRO--(BUSINESS WIRE)-- Fitch Ratings has assigned an expected long-term foreign currency rating of 'BBB(exp)' to Caixa Economica Federal's (Caixa) upcoming issue of senior unsecured notes. The final rating is contingent upon the receipt of final documents conforming to the information already received.

The amount of the notes will be approximately up to USD1.5 billion and they will have a maturity up to 2022. The final amount, tenor, currency and interest rate will be set at the time of the issuance. The notes will bear a semi-annual fixed coupon with a bullet payment without any grace period. This issuance is part of a global medium-term notes program of up to USD5 billion and its proceeds will be used to expand its lending activities.

The expected rating assigned to Caixa's issuance corresponds to the bank's IDR of 'BBB' with Outlook Stable by Fitch.

Caixa's ratings are based on the sovereign ratings of Brazil and reflect the federal government's full control and high probability of support. Fitch considers Caixa as a 'public-mission bank' given the increasingly important role it plays in national economic development and its involvement in numerous governmental programs. The ratings also take into account Caixa's strong institutional image and the fact that it is regarded as a safe haven in times of crisis and is the country's largest savings deposit taker.

Caixa's ratings would be affected by potential alterations in the sovereign ratings and/or its shareholder's willingness to provide support. Fitch does not expect a change in its evaluation of the government's willingness to provide support over the rating horizon, and Brazil's sovereign Outlook remains Stable.

Created in 1861, Caixa is Brazil's fifth-largest bank in assets and the second-largest in deposits. It is subordinate to the Ministry of the Treasury and operates in 5,500 municipalities, as both an agent for important government policies related to the housing, basic sanitation, infrastructure and development sectors and a player in commercial banking, through its extensive distribution network.

Additional information is available at 'www.fitchratings.com' or 'www.fitchratings.com.br'. 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 Criteria and Research:

--'National Ratings Criteria' (19 January 2011);

--'Global Financial Institutions Rating Criteria' (15 August 2012).

Applicable Criteria and Related Research:

National Ratings Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=595885

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=686181

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Fitch Ratings
Primary Analyst
Esin Celasun, +55-21 4503-2626
Associate Director
Fitch Ratings Brasil Ltda.
Praca XV de Novembro, 20 - 401 B,
Rio de Janeiro, RJ, Brasil
or
Secondary Analyst
Jean Lopes, +55-21 4503-2614
Associate Director
or
Committee Chairperson
Franklin Santarelli, +1 212-908-0739
Managing Director
or
Media Relations:
Jaqueline Carvalho, +55 21 4503 2623, Rio de Janeiro
Email: jaqueline.carvalho@fitchratings.com
or
Elizabeth Fogerty, +1 212-908-0526, New York
Email: elizabeth.fogerty@fitchratings.com

Source: Fitch Ratings