Banco Fibra S.A.

Demonstrated capital support from shareholders Strategic shift towards less risky business segments New management team with proven experience Concentrated funding sources Moderate capital levels Still high NPL levels due to its legacy portfolio The negative outlook on Fibra reflects our view of the negative economic risk trend in our Banking Industry Country Risk Assessment (BICRA) on Brazil. The outlook also reflects that Fibra's finances could deteriorate due to pressures on Brazil's banking system as a result of the sovereigns fiscal and monetary tightening. If this negative trend materializes we could revise Fibra's stand-alone credit profile (SACP) downward and lower the ratings because the more difficult operating environment would hit Fibra's bottom line. The negative outlook also reflects our belief that

...Still high NPL levels due to its legacy portfolio Outlook: Negative The negative outlook on Fibra reflects our view of the negative economic risk trend in our Banking Industry Country Risk Assessment (BICRA) on Brazil. The outlook also reflects that Fibra's finances could deteriorate due to pressures on Brazil's banking system as a result of the sovereigns fiscal and monetary tightening. If this negative trend materializes we could revise Fibra's stand-alone credit profile (SACP) downward and lower the ratings because the more difficult operating environment would hit Fibra's bottom line. The negative outlook also reflects our belief that the bank new loans portfolio, which is being originated under the revised business plan of the bank, could deteriorate as a result of the challenging macro-economic environment. If the bank's asset quality (measured by nonperforming loans NPLs plus charge offs) of the bank's new loan reaches consistently above 2.5% we could revise the bank's risk position...

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