Market Overview

Fitch Affirms Banco da Amazonia's Ratings and Withdraws Viability Rating

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SAO PAULO--(BUSINESS WIRE)--

Fitch Ratings today affirmed the Long-term Issuer Default Ratings (IDR) of Banco da Amazonia S.A. (BdA) at 'BBB' and withdraws its 'bb-' viability rating (VR). A full list of ratings follows at the end of this release.

The affirmation of the ratings is derived from the support of its main shareholder, the National Treasury, an entity fully controlled by the Brazilian federal government. This support also reflects the importance of BdA for the development of Brazil's northern region.

Given the failure to implement a restructuring process to tackle Caixa de Previdencia Complementar do Banco da Amazonia - Capaf's actuarial deficit, the Private Pension Authority (Previc) intervened on Capaf on Oct. 4, 2011. Capaf remains under intervention until January 2013. The resolution of the Capaf's actuarial deficit is the main risk issue affecting BdA's financial profile. As a response, the federal government has allowed for a capital injection up to BRL1 billion to be used if necessary until 2014.

Fitch has withdrawn BdA's VR because according to the agency's rating methodology, banks with a public mission typically do not have a VR assigned to them.

RATING DRIVERS AND SENSITIVITIES

A review of BdA's IDRs would occur should there be any changes to the sovereign ratings, or a weakening of support by the sovereign.

Banco da Amazonia S.A. (BdA) was founded in 1942 to promote the development of the Northern region of Brazil. The bank is the financial agent of Constitutional Fund of the North - FNO.

Fitch affirms Banco da Amazonia S.A.'s ratings as follows:

--Foreign and local currency IDRs at 'BBB'; Outlook Stable;

--Foreign and local currency short-term IDRs at 'F2';

--Support Rating at '2';

--Support Rating Floor at 'BBB';

--National long-term rating at 'AAA (bra)'; Outlook Stable;

--National short-term rating at 'F1+ (bra)';

--Viability Rating; withdrawn.

Additional information available at 'www.fitchratings.com' or 'www.fitchratings.com.br'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Global Financial Institutions Rating Criteria' (Aug. 15, 2012);

--'Viability Ratings: An Introductory Primer' (July.20, 2011).

--'National Ratings Criteria' (Jan. 19, 2011).

Applicable Criteria and Related Research:

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=686181

Viability Ratings: An Introductory Primer

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=645609

National Ratings Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=595885

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.

Fitch Ratings
Jaqueline Carvalho, +55 21 4503 2623
Media Relations, Rio de Janeiro
jaqueline.carvalho@fitchratings.com
or
Elizabeth Fogerty, +1-212-908-0526
Media Relations, New York
elizabeth.fogerty@fitchratings.com
or
Primary Analyst:
Paulo Fugulin, +55 - 11 - 4504-2206
Associate Director
Fitch Ratings Brasil Ltda.
Alameda Santos, 700 - 7th floor
Sao Paulo, SP, Brazil
or
Secondary Analyst:
Eduardo Ribas, +55 - 11 - 4504-2613
Associate Director
or
Committee Chairperson
Ed Thompson, +1-212-908-0364
Senior Director

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