Bulletin: Banco Bradesco S.A.'s Acquisition Of HSBC Bank Brasil S.A. Doesn't Affect Ratings

SAO PAULO (Standard&Poor's) Aug. 3, 2015--Standard&Poor's Ratings Services said today that its ratings and outlook on Banco Bradesco S.A. (global scale: BBB-/Negative/A-3; national scale: brAAA/Negative/brA-1+) are not affected following today's announcement that the bank reached an agreement to buy HSBC Bank Brasil S.A. for $5.2 billion in cash. Although the acquisition may reduce Bradesco's risk-adjusted capital ratio, it not sufficient to weaken our current assessment of the bank's "moderate" capital to "very weak" or the bank's stand-alone credit profile to 'bb' from its current 'bbb', given the notches of uplift the bank receives from its high systemic importance and expected government extraordinary support. Under Standard&Poor's policies, only a Rating Committee can determine a Credit

...SAO PAULO (Standard & Poor's) Aug. 3, 2015--Standard & Poor's Ratings Services said today that its ratings and outlook on Banco Bradesco S.A. (global scale: ###-/Negative/A-3; national scale: brAAA/Negative/brA-1+) are not affected following today's announcement that the bank reached an agreement to buy HSBC Bank Brasil S.A. for $5.2 billion in cash. Although the acquisition may reduce Bradesco's risk-adjusted capital ratio, it not sufficient to weaken our current assessment of the bank's "moderate" capital to "very weak" or the bank's stand-alone credit profile to '##' from its current '###', given the notches of uplift the bank receives from its high systemic importance and expected government extraordinary support. Under Standard & Poor's policies, only a Rating Committee can determine a Credit Rating Action (including a Credit Rating change, affirmation or withdrawal, Rating Outlook change, or CreditWatch action). This bulletin and its subject matter have not been the subject of Rating...

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