Fitch Ratings has assigned Banco BTG Pactual S.A.'s USD500 million senior unsecured notes due 2025 an expected long-term rating of 'BB-'.

The notes will be part of BTG Pactual's proposed reopening of senior unsecured notes, originally issued in November 2019, and will be issued through BTG Pactual's Cayman Islands Branch under the parent bank's existing USD5 billion medium-term note program.

KEY RATING DRIVERS

The senior unsecured notes are rated at the same level as the bank's 'BB-' Long-Term Issuer Default Ratings (IDRs), which reflects the unsecured nature of the instruments. The notes will also rank pari passu with other senior unsecured obligations. The probability of default of any senior obligation is tied to that of the bank (reflected in the Long-Term IDR), as a default of senior obligations would be treated by the agency as default by the entity.

BTG Pactual's IDRs are aligned with its 'bb-' Viability Rating (VR), indicating that its creditworthiness is driven by the bank's intrinsic credit profile.

For more details on BTG Pactual's ratings and credit profile, including its IDR rating drivers and sensitivities, see Fitch's press release ' Fitch Affirms BTG Pactual's IDRs at 'BB-'; Outlook Negative,' dated June 30, 2021 available at www.fitchratings.com.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive rating action/upgrade:

Upgrades on debt ratings depend on upgrades of BTG Pactual's IDRs, given it serves as an anchor rating for issuances.

Factors that could, individually or collectively, lead to negative rating action/downgrade:

Debt rating downgrades will depend on downgrades of BTG Pactual's IDRs, given that its serves as an anchor rating for issuances.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579

DATE OF RELEVANT COMMITTEE

29 June 2021

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg

RATING ACTIONSENTITY/DEBT	RATING

Banco BTG Pactual S.A.

senior unsecured

LT	BB-(EXP) 	Expected Rating

VIEW ADDITIONAL RATING DETAILS

Additional information is available on www.fitchratings.com

(C) 2021 Electronic News Publishing, source ENP Newswire