Fitch Expects to Rate Itau Unibanco Holding's Senior Notes 'BBB+(exp)'

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings expects to assign a long-term foreign currency rating of 'BBB+(exp)' to Itau Unibanco Holding S.A.'s (IUH) upcoming USD senior unsecured fixed-rate notes.

The notes will be issued by IUH's Grand Cayman branch, for an amount to be determined at the issuance. The principal will mature in three years in May 2018 and interest payments will be made semi-annually. The settlement amount paid to the investors will be denominated in USD. The notes will carry a fixed interest rate to be set at time of issuance and are part of a USD100 billion global medium-term note program. The notes rank equal with other senior unsecured and unsubordinated debt. The final rating is contingent upon the receipt of final documents conforming to information already received.

The expected rating assigned to IUH's new issuance corresponds to the bank's Issuer Default Ratings (IDRs) and ranks equal with other senior unsecured and unsubordinated debt. IUH has a long-term foreign currency IDR of 'BBB+' with a Negative Outlook. The Rating Outlook was recently revised to Negative from Positive, mirroring the Outlook on the sovereign rating.

Fitch continues to believe that IUH's credit profile meets the criteria to be rated above the sovereign rating, given its diverse and stable funding, strong profitability in Brazil and compared to other banks around the world, diverse business mix, strong and well-matched funding, good asset quality trends backed by strong loan loss reserves, and sufficient capital. In addition, Fitch recognizes IUH's solid franchise, efficient management and strategy and conservative risk appetite along economic cycles.

The net proceeds of the senior notes will be used for general corporate purposes.

Controlled by the Egydio de Souza Aranha and Moreira Salles families, IUH is the largest private financial conglomerate in Brazil and Latin America and its main subsidiary is one of Brazil's leading retail banks.

Date of Relevant Rating Committee: April 10, 2015.

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

Applicable Criteria and Related Research:

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

--'Macro-Prudential Risk Monitor' (3 March 2015).

Applicable Criteria and Related Research:

Macro-Prudential Risk Monitor - February

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=861312

Global Bank Rating Criteria

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

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=984850

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View source version on businesswire.com: http://www.businesswire.com/news/home/20150518006463/en/

Fitch Ratings
Primary Analyst
Robert Stoll
Director
+1 212-908-9155
Fitch Ratings, Inc.
33 Whitehall St.
New York, NY 10004
or
Secondary Analyst
Eduardo Ribas
Director
+55-11-4504-2213
or
Committee Chairperson
Franklin Santarelli
Managing Director
+1 212-908-0739
or
Media Relations:
Elizabeth Fogerty, +1 212-908-0526
[email protected]

Source: Fitch Ratings

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