Relevant Fact 2016

The Development Bank OF Minas Gerais (BDMG) announces that on 12/12/16, Moody’s Investors Service reaffirmed the ratings, “B1” on long-term global scale, “Baa3.br” on long-term national scale and “BR-3” on short-term national scale. The outlook on BDMG’s rating is negative following the outlook on the rating of the state. In this credit opinion, Moody’s confirms the BDMG’s stand alone credit profile in “B1”, pointing out as positive factors its key role in regional economic development program fully aligned with the objectives of the its owner, the State of Minas Gerais; supported by conservative dividend payout policy, adequate capitalization levels and higher funding diversification versus peers.

On 12/14/16, S & P Global Ratings downgraded the institution to “B-” from “BB-” on the global scale and to “brB-” from “brA” on the Brazilian national scale with a negative outlook due to its shareholder, the state of Minas Gerais, downgrade occurred on previous day. The report highlights that BDMG keeps its stand-alone credit profile (SACP) in “BB-“, enjoying adequate liquidity and risk positions and a strong capital structure. Despite the recessionary macroeconomic scenario that has penalized companies and governments, BDMG reaffirms its commitment to fostering the sustainable socioeconomic development of Minas Gerais and the support of its controller. This fact was confirmed in September when the Shareholders’ Meeting approved the increase of BRL$ 100 million in the bank’s capital, half paid immediately and half to be paid in one year, according to the applicable legislation.

Relevant Fact 2018

The Development Bank OF Minas Gerais (BDMG) announces that on December 6, 2018, S & P Global Ratings upgraded BDMG to “B” from “B-” on long-term global scale the and “brA-” of “brBBB-” on a long-term national scale, due to lower risk of intervention of  the State of Minas Gerais in the bank. The agency also reviewed the SACP to “b” from “b +”.

S & P considered that, despite the financial stress faced by the State of Minas Gerais, BDMG’s shareholder, there is no evidence of a negative intervention in the bank, through withdrawal of funds or any other form of reduction of the bank’s financial flexibility. Thus, S & P Global believes that, as the risk of a negative intervention is lower than previously expected, than the constraints previously imposed on the rating no longer apply.

Regardless of the challenges faced by the state economy, the BDMG reinforces its commitment to fostering the sustainable socioeconomic development of Minas Gerais and maintaining the support of its controller to its mission.