Moody's rates Banco ABC Brasil notes Baa3

Moody's Investors Service said it assigned a provisional long-term foreign-currency debt rating of Baa3 to Banco ABC Brasil SA's $3 billion global medium-term note program, along with a provisional short-term foreign-currency debt rating of prime-3.

Moody's also assigned a Baa3 foreign-currency debt rating to the proposed senior unsecured notes to be issued by the bank under the program.

The notes, which are due March 2016, will be denominated in Brazilian real and settled in U.S. dollars.

The outlook is stable.

The rating on the notes is derived from the bank's Baa3 global local-currency deposit rating, Moody's said.

The ratings reflect the bank's structural vulnerability as a medium-sized franchise that is largely funded by highly sensitive wholesale deposits, the agency said, and the high competition in its core markets.

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