S&P rates Unibanco eurobonds B+

Standard & Poor's assigned a B+ rating to Unibanco-Uniao de Bancos Brasileiros, SA's $125 million 4% eurobonds due 2005.

S&P said the ratings reflect the bank's solid franchise in Brazil, its diversified business profile, high-quality management, strong earnings power and overall strategy in line with the competitive Brazilian

market.

Balancing these aspects are Unibanco's low (although improving) operating efficiency compared with that of its Latin American peers, a track record of substantial charge-offs and exposure to Brazil's volatile environment and sovereign risk, S&P added.

UBB's growth strategy has included a combination of acquisitions, strategic alliances with large local retail chains, and organic growth. These factors have helped the bank to position itself as one of the leading private players in the competitive Brazilian banking system. The bank is expected to continue with the benefits of cross-selling opportunities and its attractive franchises in insurance, credit cards, asset management, pension funds and consumer credit.

S&P raises outlook on TransGas, Desarrollo

Standard & Poor's raised its outlook to stable from negative on TransGas de Occidente SA's $240 million 9.79% notes at BB and Compania De Desarrollo Aeropuerto Eldorado SA's $116 million 10.19% notes due 2011 at BB.

S&P said the revision to the two Columbian project financings along with utility Interconexion Electrica SA follows a similar change to the outlook on the BB foreign and BBB local currency ratings of the Republic of Colombia.

The outlook on CC rated TermoEmcali Funding Corp. remains negative following default by Empresas Municipales de Cali in the payment due to TermoEmcali I SCA ESP.

Fitch upgrades Uruguyan banks

Fitch Ratings upgraded the foreign-currency ratings of Uruguayan banks. The action is in line with the sovereign rating. The outlook is stable.

Fitch said that while Uruguayan economic conditions remain difficult, limiting the scope for asset quality and earnings improvement in the financial system, deposits have remained stable since February of this year.

This is particularly notable given that the government has since announced and completed the restructuring of its debt.

Fitch upgraded to B- from CCC- Banco Santander SA, Banco Sudameris-Uruguay Branch, HSBC Bank (Uruguay) SA, Federacion Uruguaya de Cooperativas de Ahorro y Credito, Cooperativo de Ahorro y Credito and Cooperativa de Ahorro y Credito FAE.

Fitch upgraded to CCC+ from CCC- Cooperativa Nacional de Ahorro y Credito and Primera Cooperativa de Ahorro y Credito de Paysandu.

Moody's rates BSN Glasspack notes B1

Moody's Investors Service assigned a prospective B1 rating to of BSN Glasspack Obligation SA's proposed €160 million senior subordinated notes and confirmed BSN Financing Co. SA's senior subordinated bonds at B2.

The outlook remains negative but Moody's said the proposed transaction will improve the company's liquidity position so it will consider a change to stable following finalization.

Moody's said the ratings reflect BSN Glasspack's leadership position in the French and Benelux glass container market as well as its leading position in Western Europe for the production of glass containers; its large established network of production facilities and its low-cost technology position, which benefits from a licensing agreement with Owens-Illinois; an experienced management team, which has demonstrated its ability to rationalize the business and improve productivity; the high market barriers to entry which exist given the capital intensive nature of this business and the necessity to develop strong customer relationships; the group's long-term customer relationships and longer-term contracts with some of the major food and beverage manufacturers; and Moody's expectation that any potential M&A activity will be limited to small, bolt-on acquisitions.

However, the ratings also reflect: the continued weak market conditions in the glass container industry in Western Europe, which has been characterized by overcapacity, strong competitors and product substitution, particularly by PET in the German non-alcoholic beverage business; the weak, albeit improving, credit metrics, with 2002 net debt/EBITDA of 3.6x (prior year: 4.2x) and EBITDA/net interest of 3.2x (prior year: 2.6x), combined with the limited cash flow generation of the company, particularly in light of the high debt amortization schedule and continued cash restructuring expenses; the volatility of sales of certain products, e.g. beer bottles, which are in part dependent on good weather, while operating leverage is high given the capital intensive nature of the business; and the reasonably high customer concentration with BSN Glasspack's two largest customers representing 19.2% of 2002 net sales, although Moody's notes that the company benefits from long-term contracts with these two customers (between 3 and 5 years).

Moody's upgrades Bay View

Moody's Investors Service upgraded Bay View Capital's trust preferred stock to Ba1 from Ba3 and kept it on review for possible upgrade.

Moody's said the upgrade reflects additional progress by Bay View Capital in shrinking its balance sheet, along with the recent availability of third-party funding for its continuing auto financing business. The new financing arrangement is expected to free-up a material amount of the firm's cash.

Bay View has the option to redeem the trust preferred stock at the end of 2003, and the company intends to do so, Moody's noted.

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