Fitch rates Banco Santander (Brasil) notes BBB+

Fitch Ratings said it expects to assign a rating of BBB+ to Banco Santander (Brasil) SA's upcoming issue of senior unsecured notes with a maturity of up to four years indexed to the Chilean inflation rate and settled in U.S. dollars.

The notes will be issued through the bank's Grand Cayman branch; the amount of the notes and the interest rate will be set at the time of the issuance.

The principal will mature in April 2016, Fitch said, and interest payments will be made semi-annually beginning in October 2012.

The notes are part of a $10 billion global medium-term note program of which about $4.1 billion is currently outstanding.

The proceeds will be used by the bank for general banking purposes.

The expected rating assigned to the bank's new issuance corresponds to the issuer default ratings for the bank and ranks equal with other senior unsecured debt, Fitch said.

The bank's long-term local-currency issuer default rating of A- with a negative outlook and its long-term foreign-currency issuer default rating of BBB+ are above the ratings of Brazil.

The bank's foreign-currency issuer default ratings are constrained by the country ceiling, the agency said.

The ratings are driven by the support expected from the bank's parent, Banco Santander, due to the strategic importance of this subsidiary within the group's global operations, Fitch said.

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