Fitch Ratings has assigned a 'BB-' final rating to Banco do Brasil S.A.'s (BdB) USD750 million senior notes.

The notes due were issued through its Grand Cayman branch and are due 2030 with a 6.5% annual interest rate. The net proceeds will be used to finance and/or refinance, in whole or in part, new or existing eligible green and social projects in accordance with bank's Sustainability Finance Framework.

The final rating is in line with the expected rating that Fitch assigned to the proposed debt on April 11, 2023. Please see 'Fitch Expects to Rate Banco do Brasil's Proposed Senior Notes Due 2030 'BB-(EXP),' at www.fitchratings.com.

Key Rating Drivers

The rating on the notes corresponds to BdB's 'BB-' Long-Term Foreign Currency Issuer Default Rating (IDR)/Stable Outlook, and ranks equal to its other senior unsecured debt. BdB's ratings are equalized with Brazil's IDRs (BB-/Stable) and are further underpinned by the bank's Viability Rating (VR). Fitch believes the bank would receive support from the federal government, if needed. This reflects the majority ownership by the federal government and its key policy role, particularly in rural lending and systemic importance.

Rating Sensitivities

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

As the notes are rated at the same level as the IDR, the rating on the notes is sensitive to any change in the bank's IDR.

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

As the notes are rated at the same level as the IDR, the expected rating on the notes is sensitive to any change in the bank's IDR.

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

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