Ratings roundup: Banco do Brasil unit, Forum bonds

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Tuesday, February 1, 2011

Fitch and Feller Rate have taken rating actions on the Chilean unit of Brazil's Banco do Brasil (BB) and assigned a AA- rating to the car finance company Forum's bonds.

Fitch has assigned a positive outlook to Banco do Brasil Chile to align it with its parent company's foreign currency long-term ratings, which would benefit from an upgrade of Brazil's sovereign rating, the agency said.

Fitch also affirmed the bank's national scale long-term deposits at A and short-term deposits at N1 based on support provided by BB.

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BB has operated in Chile since 1963 and mostly finances foreign trade transactions. The bank is in talks to enter local bank CorpBanca's (NYSE: BCA) ownership through a 10% stake via a capital increase.

To read the full report in Spanish, go to this link

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Feller Rate withdrew Banco do Brasil Chile's ratings at the request of the issuer.

The agency rated the bank's solvency at A- and long- and short-term deposits at A- and Level 2 on a national scale, respectively.

To read the full report in Spanish, go to this link

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Feller Rate also gave a AA- national scale rating to Forum's 10-year bonds worth 1mn of Chile's inflation-linked unit known as the UF (21.5bn pesos, or US$44.8mn).

The rating is based on Forum's successful business model, which has allowed it to position itself as the country's largest non-banking car finance company. The agency also took into account Forum's robust financial profile, which mitigates its high leverage level.

Forum is 51% owned by Spain's BBVA (NYSE: BBVA).

To read the full report in Spanish, go to this link