Bmeb4 - Mina De Ouro - Upgrade Da Agencia Moodys (BMEB4)

** THIS UPGRADES BANCO MERCANTIL'S SR NOTES FROM B1 to Ba2

Issuer............. Banco Mercantil do Brasil SA
Rating............. B1
Cur/Size........... $[*]mio
Final Maturity..... 5yr (~4yr average life)
Structure.......... Sr notes, Amortizing in yrs 3, 4 and 5
Initial Guidance... 7.75% Area
Denominations...... $100k / $1k
Documentation...... Reg S
Listing............ Dublin
Bookrunner......... Dresdner Kleinwort (sole)
Co managers..........BES Investimento / BBVA

Pricing likely today...Please let us know if u have interest !!!




Moodys announces bank rating actions of JDA Methodology -- Braz
2007-04-27 19:45 (New York)



New York Sao Paulo
M. Celina Vansetti Ceres Lisboa
Senior Vice President Vice President - Senior
Analyst
Financial Institutions Group Financial Institutions Group
Moody's Investors Service Moody's America Latina Ltda.
JOURNALISTS: 212-553-0376 55-11-3043-7300
SUBSCRIBERS: 212-553-1653



Moody's announces bank rating actions resulting from implementation of JDA
Methodology and BFSR -- Brazil




New York, April 27, 2007 -- Moody's Investors Service today published the
rating results for banks in Brazil, as part of the planned application of
its joint default analysis (JDA) and its updated bank financial strength
rating (BFSR) methodologies,

BFSRs evaluate the stand-alone or intrinsic financial strength of banks
without reference to external support factors. BFSRs are the starting
point of Moody's bank credit analysis, and are an important determinant
of Moody's bank deposit and debt ratings.

Moody's then uses its JDA methodology to incorporate the potential for
external support into a bank's local currency deposit rating. The
potential for external support can reduce the riskiness of a bank's
deposit and debt obligations; however, such support is often uncertain.
Moody's uses conservative support assumptions and a limited number of
support levels to ensure that sufficient weight is given to a bank's
intrinsic financial strength in its bank deposit and debt ratings.

Moody's uses deposit ratings to determine bank debt ratings based on its
notching guidelines for bank securities. Ratings for foreign currency
obligations are determined after considering Moody's country ceilings for
foreign currency ratings.

The methodologies are being implemented country by country, with results
being announced on a weekly basis. Results for those banks with a parent
bank located in another country where the methodologies have not yet been
implemented will be concluded at the same time as the parent.

The updated BFSR methodology has benefited the ratings of most of the
Brazilian banks rated by Moody's. Relatively benign operating and
regulatory environment combined with specific franchise and financial
developments resulted in BFSR upgrades of one to two notches. The BFSR
of four banks were upgraded by three notches to reflect the positive
franchise and financial metrics trends, when compared to global peers.

Moody's assesses support levels to banks in Brazil using its low country
support guidelines. This guideline takes into consideration the historic
evidence of support for banks, in addition to the size, strength and the
degree of fragmentation of the Brazilian banking system.

Based on this framework, the local currency deposit ratings of only two
banks were affected by the implementation of JDA. Most deposit ratings
upgrades were a direct result of upgrades in the banks' BFSRs. Of note is
the deposit rating of Banco Votorantim, which was upgraded by three
notches, to Baa1 from Ba1, primarily as a result of the upgrade of the
bank's BFSR.

The national scale ratings, which are derived from local currency deposit
ratings, were also upgraded as a result.

Moody's noted that junior securities of Banco Industrial e Comercial
(BICBANCO) and of Banco Cruzeiro do Sul were upgraded by three notches
to Ba2, from B2, reflecting the upgrade of their respective BFSRs and
resultant lift in their deposit ratings, together with the application of
Moody's refined notching convention. For similar reasons, Banco Mercantil
do Brasil's subordinated debt was upgraded by three notches to Ba3, from
B3. Moody's refined notching convention determines that senior
subordinated debt be rated one notch lower than deposit ratings, instead
of two notches that had been previously applied to those ratings.

This press release lists the names of issuers in Brazil whose ratings
have been changed or affirmed. To view ratings changes, and other
documents explaining Moody's bank rating methodologies, please go to
www.moodys.com/JDABanks.

The specific ratings changes are as follows:

Banco do Brasil S.A.: The BFSR is changed to C, from D. The local
currency deposit ratings are affirmed at A1/ Prime -1. The Foreign
Currency Deposit Ratings are unchanged at Ba3/Not Prime. The Foreign
Currency Bond Rating for senior obligations is also unchanged at Baa3,
and the subordinated debt rating is affirmed at Ba1. The long and
short-term National Scale Ratings are affirmed at Aaa.br and BR-1,
respectively.

Caixa Econômica Federal: The BFSR is changed to D+ from E+. The local
currency deposit ratings are affirmed at A1/Prime-1. The Foreign Currency
Deposit Ratings are unchanged at Ba3/Not Prime. The long and short-term
National Scale Ratings are affirmed at Aaa.br and BR-1, respectively.

Banco Bradesco S.A.: The BFSR is changed to B-, from C-. The local
currency deposit ratings are affirmed at A1/ Prime -1. The Foreign
Currency Deposit Ratings are unchanged at Ba3/Not Prime. The Foreign
Currency Bond Rating for senior obligations is unchanged at Baa3, and the
subordinated debt rating is affirmed at Ba1. The long and short-term
National Scale Ratings are affirmed at Aaa.br and BR-1, respectively.

Banco Bradesco S.A. (Grand Cayman): The Foreign Currency Bond Rating for
subordinated obligations is affirmed at Ba1

Banco Itaú S.A.: The BFSR is changed to B-, from C. The local currency
deposit ratings are affirmed at A1/ Prime -1. The Foreign Currency
Deposit Ratings are unchanged at Ba3/Not Prime. The Foreign Currency Bond
Rating for senior obligations is unchanged at Baa3. The long and
short-term National Scale Ratings are affirmed at Aaa.br and BR-1,
respectively.

Cia Itauleasing de Arrendamento Mercantil: Issuer rating assigned at A1.
Local currency debt rating is affirmed at A1; national scale local
currency debt rating is affirmed at Aaa.br.

Banco Itaú BBA S.A.: The BFSR is changed to B-, from C. The local
currency deposit ratings are affirmed at A1/ Prime -1. The Foreign
Currency Deposit Ratings are unchanged at Ba3/Not Prime. The long and
short-term National Scale Ratings are affirmed at Aaa.br and BR-1,
respectively.

União de Bancos Brasileiros S.A. -- Unibanco: The BFSR is changed to B-,
from C-. The local currency deposit ratings are affirmed at A1/ Prime -1.
The Foreign Currency Deposit Ratings are unchanged at Ba3/Not Prime. The
Foreign Currency Bond Rating for senior obligations is unchanged at Baa3,
and the subordinated debt rating is affirmed at Ba1. The long and
short-term National Scale Ratings are affirmed at Aaa.br and BR-1,
respectively.

União de Bancos Brasileiros S.A. -- Unibanco (Grand Cayman): The Foreign
Currency Bond Rating for subordinated obligations is affirmed at Ba1

HSBC Bank Brasil Banco Múltiplo S.A.: The BFSR is changed to C, from D+.
The local currency deposit ratings are upgraded to A1/Prime-1 from
A3/Prime-2. The Foreign Currency Deposit Ratings are unchanged at Ba3/Not
Prime. The long and short-term National Scale Ratings are affirmed at
Aaa.br and BR-1, respectively.

Banco Votorantim S.A.: The BFSR is changed to C-, from D+. The local
currency deposit ratings are upgraded to Baa1/Prime-2, from Ba1/Not
Prime. The Foreign Currency Deposit Ratings are unchanged at Ba3/Not
Prime. The Foreign Currency Bond Rating for senior obligations is
unchanged at Ba1. The long-term National Scale Rating is changed to
Aaa.br, from Aa1.br and the short-term National Scale Rating is affirmed
at BR-1.

Banco Votorantim Nassau Branch: The Foreign Currency Bond Rating is
affirmed at Ba1

Banco ABN AMRO S.A.. The BFSR is changed to C, from D+. The foreign
currency deposit ratings remain unchanged at Ba3/Not-Prime.

Banco Safra S.A.. The BFSR is changed to C-, from D+. The local currency
deposit ratings remain unchanged at Baa1/Prime-2. The foreign currency
deposit ratings are unchanged at Ba3/Not Prime. The long and short-term
National Scale ratings are affirmed at Aaa.br and BR-1, respectively.

Banco Citibank S.A.. The BFSR is changed to C-, from D+. The foreign
currency deposit ratings remained unchanged at Ba3/Not-Prime. The Foreign
Currency Bond Rating for senior obligations changed to Baa3 from Ba1.

Banco Santander Banespa S.A.: The BFSR is changed to C- from D+. The
local currency deposit ratings remain unchanged at A3/Prime-2. The
foreign currency deposit ratings are unchanged at Ba3/Not Prime. The long
and short-term National Scale ratings are affirmed at Aaa.br and BR-1,
respectively.

Banco do Estado de São Paulo S.A. (Grand Cayman): The Foreign Currency
Bond Rating for subordinated obligations is affirmed at Ba1.

Banco Nossa Caixa S.A.: The BFSR is changed to D+ from D-. The local
currency deposit ratings remain unchanged at A3/Prime-2. The foreign
currency deposit ratings are unchanged at Ba3/Not Prime. The long and
short-term National Scale ratings are unchanged at Aaa.br and BR-1,
respectively.

Banco Industrial e Comercial S.A.:. The BFSR is changed to D+ from D-.
The local currency deposit ratings are changed to Ba1/Not Prime; from
Ba3/Not-Prime. The foreign currency deposit ratings are unchanged at
Ba3/Not Prime. The Foreign Currency Bond Rating for senior obligations is
also changed to Ba1 from Ba3, and the subordinated debt rating is changed
to Ba2 from B2. The long and short-term National Scale ratings are
changed to Aa2.br and BR-1 from A2.br and BR-2, respectively.

Banco BBM S.A.. The BFSR is changed to D+ from D-. The local currency
deposit ratings are changed to Ba1/Not Prime from Ba3/Not Prime. The
foreign currency deposit ratings are unchanged at Ba3/Not Prime. The long
and short-term National Scale ratings are changed to Aa2.br and BR-1 from
A2.br and BR-2, respectively.

Banco BMG S.A.. The BFSR is changed to D+ from D-. The local currency
deposit ratings are changed to Ba1/Not Prime from Ba3/Not Prime. The
foreign currency deposit ratings are unchanged at Ba3/Not Prime. The
Foreign Currency Bond Rating for senior obligations is also changed to
Ba1 from Ba3. The long and short-term National Scale ratings are changed
to Aa2.br and BR-1 from A3.br and BR-2, respectively.

Banco Cruzeiro do Sul S.A.. The BFSR is changed to D+ from D-. The local
currency deposit ratings are changed to Ba1/Not Prime; from Ba3/Not
Prime. The foreign currency deposit ratings are unchanged at Ba3/Not
Prime. The Foreign Currency Bond Rating for senior obligations is also
changed to Ba1 from Ba3, and the subordinated debt rating is changed to
Ba2 from B2. The long and short-term National Scale ratings are changed
to Aa2.br and BR-1 from A3.br and BR-2, respectively.

Banco BMC S.A. The BFSR is changed to D from D-. The local currency
deposit ratings are changed to Ba2/Not Prime; from Ba3/Not Prime. The
foreign currency deposit ratings are unchanged at Ba3/Not Prime. The long
and short-term National Scale ratings are changed to Aa3.br and BR-1 from
A3.br and BR-2, respectively. All ratings remain on review for possible
upgrade.

BES Investimento do Brasil S.A. The BFSR is changed to D+ from D-. The
local currency deposit ratings are changed to Baa1/Prime-2; from
Baa2/Prime-2. The foreign currency deposit ratings are unchanged at
Ba3/Not Prime. The long and short-term National Scale ratings are
affirmed at Aaa.br and BR-1, respectively.

Banco GMAC S.A.. The BFSR is changed to D+ from D-. The local currency
deposit ratings are changed to Ba1/Not Prime; from Ba2/Not Prime, with a
negative outlook. The foreign currency deposit ratings are unchanged at
Ba3/Not Prime. The long and short-term National Scale ratings are changed
to Aa2.br and BR-1 from Aa3.br and BR-1, respectively.

Banco Panamericano S.A.. The BFSR is changed to D from D-. The local
currency deposit ratings are changed to Ba2/Not Prime; from Ba3/Not
Prime. The foreign currency deposit ratings are unchanged at Ba3/Not
Prime. The Foreign Currency Bond Rating for subordinated obligations is
changed to Ba3 from B2. The long and short-term National Scale ratings
are changed to A1.br and BR-1 from A3.br and BR-2, respectively.

Banco Pine S.A.. The BFSR is changed to D from D-. The local currency
deposit ratings are changed to Ba2/Not Prime; from Ba3/Not Prime. The
foreign currency deposit ratings are unchanged at Ba3/Not Prime. The long
and short-term National Scale ratings are changed to A1.br and BR-1 from
A3.br and BR-2, respectively.

Banco Bonsucesso S.A.. The BFSR is changed to D from D-. The local
currency deposit ratings are changed to Ba2/Not Prime; from Ba3/Not
Prime. The foreign currency deposit ratings are unchanged at Ba3/Not
Prime. The long and short-term National Scale ratings are changed to
A1.br and BR-1 from A3.br and BR-2, respectively.

Banco Schahin S.A.. The BFSR is affirmed at D-. The local currency
deposit ratings are affirmed at Ba3/Not Prime. The foreign currency
deposit ratings are unchanged at Ba3/Not Prime. The Foreign Currency Bond
Rating for subordinated obligations is raised to B1, from B2. The long
and short-term National Scale ratings are changed to A2.br and BR-2 from
A3.br and BR-2, respectively.

Banco Fibra S.A. The BFSR is assigned at D. The local currency deposit
ratings are changed to Ba2/Not Prime from B1/Not Prime. The foreign
currency deposit ratings are assigned at Ba3/Not Prime. The long and
short-term National Scale ratings are changed to A1.br and BR-1 from
Baa2.br and BR-3, respectively.

Banco Mercantil do Brasil S.A.. The BFSR is changed to D from E+. The
local currency deposit ratings are changed to Ba2/Not Prime; from B1/Not
Prime. The foreign currency deposit ratings are changed to Ba3/Not Prime
from B1/Not Prime. The Foreign Currency Bond Rating for senior
obligations also changed to Ba2 from B1 and on the subordinated
obligations changed to Ba3 from B3. The long and short-term National
Scale ratings are changed to Aa3.br and BR-1 from Baa2.br and BR-2,
respectively.

The following issuers had their ratings affirmed:

Dibens Leasing S.A. Arrendamento Mercantil : local currency issuer rating
at A1; local currency debt rating at A1; national scale debt rating at
Aaa.br

BFB Leasing S.A. Arrendamento Mercantil: local currency issuer rating at
A1; local currency debt ratings at A1; national scale debt rating at
Aaa.br

ABOUT MOODY'S BANK RATINGS

Bank Financial Strength Rating

Moody's Bank Financial Strength Ratings (BFSRs) represent Moody's opinion
of a bank's intrinsic safety and soundness and, as such, exclude certain
external credit risks and credit support elements that are addressed by
Moody's Bank Deposit Ratings. Bank Financial Strength Ratings do not take
into account the probability that the bank will receive such external
support, nor do they address risks arising from sovereign actions that
may interfere with a bank's ability to honor its domestic or foreign
currency obligations. Factors considered in the assignment of Bank
Financial Strength Ratings include bank-specific elements such as
financial fundamentals, franchise value, and business and asset
diversification. Although Bank Financial Strength Ratings exclude the
external factors specified above, they do take into account other risk
factors in the bank's operating environment, including the strength and
prospective performance of the economy, as well as the structure and
relative fragility of the financial system, and the quality of banking
regulation and supervision.

Global Local Currency Deposit Rating

A deposit rating, as an opinion of relative credit risk, incorporates the
Bank Financial Strength Rating as well as Moody's opinion of any external
support. Specifically, Moody's Bank Deposit Ratings are opinions of a
bank's ability to repay punctually its deposit obligations. As such,
Moody's Global Local Currency Bank Deposit Ratings are intended to
incorporate those aspects of credit risk relevant to the prospective
payment performance of rated banks with respect to local currency deposit
obligations, and includes: intrinsic financial strength and both
implicit and explicit external support elements. Moody's Bank Deposit
Ratings do not take into account the benefit of deposit insurance schemes
which make payments to depositors, but they do recognize the potential
support from schemes that may provide assistance to banks directly.

Foreign Currency Deposit Rating

Moody's ratings on foreign currency bank obligations derive from the
bank's local currency rating for the same class of obligation. The
implementation of JDA for banks can lead to a high local currency ratings
for certain banks, which could also produce high foreign currency
ratings. Nevertheless, it should be reminded that foreign currency
deposit ratings are in all cases constrained by the country ceiling for
foreign currency bank deposits. This may result in the assignment of a
different, and typically lower, rating for the foreign currency deposits
relative to the bank's rating for local currency obligations.

Foreign Currency Debt Rating

Foreign currency debt ratings are derived from the bank's local currency
debt rating for the same class of obligation. In a similar way to
foreign currency deposit ratings, foreign currency debt obligations may
also be constrained by the country ceiling for foreign currency bonds and
notes, however, in some cases the ratings on foreign currency debt
obligations may be allowed to pierce the foreign currency ceiling. A
particular mix of rating factors are taken into consideration in order to
assess whether a foreign currency bond rating pierces the country ceiling.
They include the issuer's global local currency rating, the foreign
currency government bond rating, the country ceiling for bonds and the
debt's eligibility to pierce that ceiling.

National Scale Rating

National scale ratings are intended primarily for use by domestic
investors and are not comparable to Moody's globally applicable ratings;
rather they address relative credit risk within a given country. An Aaa
rating on Moody's National Scale indicates an issuer or issue with the
strongest creditworthiness and the lowest likelihood of credit loss
relative to other domestic issuers. National Scale Ratings, therefore,
rank domestic issuers relative to each other and not relative to absolute
default risks. National ratings isolate systemic risks; they do not
address loss expectation associated with systemic events that could
affect all issuers, even those that receive the highest ratings on the
National Scale.





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