Fitch rates Banrisul notes BB-

Fitch Ratings said it assigned to Banco do Estado do Rio Grande do Sul (Banrisul) foreign- and local-currency long-term issuer default ratings of BB+, along with foreign- and local-currency short-term issuer default ratings of B.

The agency also said it assigned an expected BB- rating on its upcoming subordinated notes.

The final rating is contingent upon the receipt of final documents conforming to information already received.

The notes will be for an amount not to exceed $500 million and will mature in January 2022.

The notes will carry a fixed interest rate to be defined.

The proceeds will be used by Banrisul for general corporate purposes.

The notes will rank at least equally with similar subordinated debt and carry a cumulative coupon deferral mechanism that can be exercised, Fitch said.

The agency also said it assigned it a viability rating of BB+, national long-term rating of AA-(bra) and national short-term rating of F1+(bra).

The outlook is stable.

The ratings reflect the company's regional importance with strong franchise in its home state of Rio Grande do Sul, its above-average profitability, adequate liquidity and granular and stable retail funding structure, Moody's said.

The ratings also consider its relatively modest nationwide market share, fierce competition in the domestic banking sector, an undiversified funding structure and risk concentration, the agency said.

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