S&P: Banco Santander (Brasil) unchanged after add-on

Standard & Poor's said the BBB rating on Banco Santander (Brasil) SA's senior unsecured notes due March 2016 remains unchanged following an add-on of up to R$500 million.

The aggregate amount of these notes will be up to R$1.25 billion.

The rating on the notes reflects its pari passu ranking with other senior unsecured debt, S&P said.

As a result, its rating is the same as Banco Santander Brazil's long-term issuer credit rating.

The bank plans to use the proceeds to continue leveraging its loan portfolio growth, said Arturo Sanchez, an S&P analyst.

The aggregate amount of the notes, following the proposed add-on, will represent less than 0.5% of the bank's total funding base, posing no significant refinancing risk, Sanchez said.

The ratings continue to reflect a BBB anchor for banks operating primarily in Brazil, the agency said, and its strong business position, adequate capital and earnings, adequate risk position and adequate liquidity.

The foreign-currency rating on Brazil constrains the bank's ratings, S&P said.

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