OREANDA-NEWS. Fitch Ratings has affirmed and subsequently revised the Rating Outlook on the following notes assigned to the senior secured pass-through notes issued by Brazil Loan Trust I (the issuer):

--USD661.9 million notes at 'BBBsf'; Outlook to Negative from Stable.

The transaction is a pass-through securitization of a 10-year amortizing loan originated by the Fitch-rated Bank of America N.A. ('A'/ Outlook Negative) to the Brazilian State of Maranhao ('BB+'/ Outlook Stable). The loan is guaranteed on an unconditional and irrevocable basis by the Federative Republic of Brazil (Brazil, rated 'BBB'/ Outlook Negative). Fitch's rating addresses timely payment of interest and principal.

KEY RATING DRIVERS
The revision of the Rating Outlook to Negative and the affirmation of the rating reflects the same rating action for Brazil's Long-term foreign and local currency Issuer Default Ratings (IDRs) on April 9, 2015.

The affirmation of the rating also takes into account the timely payments of interest and principal due in January 2015, and the stable ratings of the main counterparties.

Payments on the loan are made to a bank account at Wilmington Trust N.A. ('A-'/ Outlook Positive) as administrative agent. On the following day, funds are transferred to an Issuer account at the Bank of New York Mellon ('AA-'/ Outlook Stable) as indenture trustee to the notes. Payments are made under the notes immediately thereafter.

RATING SENSITIVITIES

The rating assigned to the notes is sensitive to changes in the credit quality of Brazil as guarantor on an unconditional and irrevocable basis. While Brazil's rating remains higher than the long-term rating of Maranhao, the transaction's rating will not be sensitive to the rating assigned to Maranhao. The transaction's rating is equivalent to the higher of Brazil's long-term or Maranhao's long-term rating.