Fitch affirms Itau Unibanco

Fitch Ratings said it affirmed Itau Unibanco Holding SA's foreign-currency long-term issuer default rating at BBB+, foreign-currency short-term issuer default rating at F2, local-currency long-term issuer default rating at A-, local-currency short-term issuer default rating at F1, viability rating at A-, national long-term rating at AAA(bra) and national short-term rating affirmed at F1+(bra).

The agency also said it affirmed the foreign-currency long-term rating on the bank's market-linked notes due November 2015 at BBB+emr, foreign-currency long-term rating on its subordinated notes due April 2020 at BBB, foreign-currency long-term rating on its subordinated notes due January 2021 at BBB and foreign-currency long-term rating on its subordinated notes due December 2021 at BBB.

Fitch said the upgrades reflect the enhanced support capacity of the Brazilian government after a sovereign upgrade and considering the systemic importance of the bank within the Brazilian financial system.

The agency also said it affirmed Banco Itau BBA SA's foreign-currency long-term issuer default rating at BBB+, foreign-currency short-term issuer default rating at F2, local-currency long-term issuer default rating at A-, local-currency short-term issuer default rating at F1, viability rating at A-, national long-term rating at AAA(bra) and national short-term rating at F1+(bra).

Also affirmed includes Itau Unibanco SA's foreign-currency long-term issuer default rating at BBB+, foreign-currency short-term issuer default rating at F2, local-currency long-term issuer default rating at A-, local-currency short-term issuer default rating at F1, viability rating at A-, national long-term rating at AAA(bra), national short-term rating at F1+(bra) and the foreign-currency long-term senior notes due January 2012 at BBB+.

The foreign-currency issuer default ratings are constrained by the country ceiling, Fitch said.

The ratings reflect the bank's broad national franchise and position as the largest private bank in Brazil, where it is a market leader in many of its business lines, the agency said.

The ratings also consider its strong track record of consistent results even during difficult economic periods, stable and diversified funding base and its adequate capital and solid liquidity, Fitch said.

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