Moody's rates Bndes notes Baa2

Moody's Investors Service said it assigned a Baa2 long-term foreign currency debt rating to the proposed senior unsecured notes to be issued by Banco Nacional de Desenvolvimento Economico e Social (Bndes).

The notes will be denominated and settled in U.S. dollars and is due April 2019.

At the same time, the agency maintained the Baa2 foreign currency debt rating to the proposed reopening of senior unsecured notes issued by Bndes. The proposed reopening will be denominated and settled in U.S. dollars and is due September 2023.

The outlook is stable.

Moody's said the foreign currency debt rating is at the country ceiling for Brazil's bond rating and derives from Bndes' Baa2 global local currency issuer rating, which in turn, is aligned to Brazil's government bond rating.

The Baa2 issuer rating incorporates two notches of uplift from Bndes' ba1 standalone credit assessment to reflect the assumption of very high likelihood of systemic support because of the bank's strategic importance to the federal government, its controlling shareholder, as its development agent, the agency said.

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