Fitch rates Banco Itau BBA notes BBB-

Fitch Ratings said it assigned an expected BBB- foreign-currency rating to Banco Itau BBA SA's proposed issue of six-year notes, which will be issued through the bank's Nassau branch under a proposed $3 billion global medium-term note program.

The agency said that the notes will be payable in dollars and the issue will be an amount fixed in Brazilian reais on the issue date, with repayment of principal and interest based on that amount. The dollar amount to be paid at each payment date will be determined by the real/dollar exchange rate, and the notes will not contain foreign-currency constraint provisions that would allow settlement in local currency in Brazil in case of foreign-exchange restrictions.

The expected rating reflects Banco Itau BBA's BBB- foreign-currency issuer default rating, the bank's strategic importance to parent company Banco Itau Holding Financeira's franchise and the parent company's lower exposure to Brazilian government debt, significant presence abroad and ample international liquidity, Fitch said.

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