Fitch Ratings has assigned an expected Long-Term rating of 'BB(EXP)' to
The size and the maturity of the issuance is yet to be determined upon book building. The bonds' proceeds shall be used for the financing and/or refinancing of existing or future social and sustainable projects. The final rating is contingent upon the receipt of final documents conforming to the information already received.
Key Rating Drivers
The expected rating on the notes corresponds to Bradesco's Long-Term (LT) Foreign Currency Issuer Default Rating (IDR; BB/Negative), as the likelihood of these senior obligations' default is the same as for the issuer and ranks equal to its other senior unsecured debt.
Fitch expects earnings to remain challenged by subdued credit demand and above historic average loan impairment charges. For more details on Bradesco's ratings and credit profile, including its Key Sating Drivers and Rating Sensitivities, see Fitch's press release 'Fitch Revises Brazilian FIs' LT
Rating Sensitivities
Factors that could, individually or collectively, lead to negative rating action/downgrade:
Debt rating downgrades will depend on downgrades of Bradesco's IDRs, given that its serves as an anchor rating for issuances.
Factors that could, individually or collectively, lead to positive rating action/upgrade:
Upgrades on debt ratings depend on upgrades of Bradesco's IDRs, given it serves as an anchor rating for issuances.
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.
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 '
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