RATINGS RATIONALE

BB DTVM's assessment reflects the company's well -established and disciplined investment process, its effective risk management controls and superior risk-adjusted performance of its fixed income funds. Also supporting the MQ1 assessment is the strong support and oversight of its parent, Banco do Brasil (GLC A3, positive). Moody's views the main challenges for BB DTVM to be: maintaining and strengthening market position, as it faces a highly competitive landscape, expansion in new markets, including internationally, integrating these new strategies with the current business framework, and improving its multimarket and equity funds' risk-adjusted investment performance.

BB DTVM follows both a top-down and a bottom-up approach to execute on its investment strategy. The investment process is coordinated by a variety of committees and sub-committees that follow a disciplined investment policy, characterized by the use of derivatives mainly for hedging purposes, the constant monitoring of market, credit and operational risks, targeting long-term performance. Committees allow a free exchange of opinions among traders, portfolio managers, risk managers, analysts, macroeconomic and investment analysts, ensuring that decisions are not made based solely on the judgment of an individual, but that reflects the majority opinion. Investment process counts on a variety of models, quantitative tools and integrated systems that support decisions and allow for monitoring risks.

Moody's commented that BB DTVM employs excellent risk management and control practices and procedures, both at a fund and at the company levels. Risk Management is an integral part of BB DTVM's investment management activities. In addition, the multiple layers of surveillance and the fact that the conglomerate is owned by the federal government increase the pressure on BB DTVM to have very tight risk control and management procedures.

BB DTVM's investment performance has been solid and the funds have a very strong risk-adjusted returns and have consistently met their risk-return objectives. The fixed income funds have outperformed both global and local benchmarks, as well as most of local peers. The company's multimarket and equity funds have generally outperformed their respective benchmarks, although have not consistently outperformed peers. Considering that fixed income is the most representative fund category for BB DTVM, Moody's views the company's investment performance to be one of the strongest risk/return performers in local market and supportive of its MQ1 assessment.

Moody's noted that BB DTVM's financial flexibility is strong and benefits from the full financial support provided by the parent company, Banco do Brasil, GLC A3, positive. BB DTVM has strategic importance to Banco do Brasil due to its capacity to consistently generate substantial net incomes and positive cash flows. The company has consistently reported solid financial metrics, and its operating and profit margins continue to be very strong.

BB DTVM's MQ1 assessment would face downward pressure if the company's funds risk-adjusted investment performance deteriorate, funds experience a substantial decrease in assets under management or there are significant deviations in the firm's process that increase operational risks.

Headquartered in Rio de Janeiro, BB DTVM is the largest asset manager in the country and a fully-owned subsidiary of Banco do Brasil. As of December 31, 2011, its total assets under management amounted to BRL487.9 billion (US$262.6 billion). As of June 2012, Banco do Brasil's consolidated assets was BRL1,051.4 billion and shareholder's equity was BRL62.3 billion.

The last action on BB DTVM took place on March 15, 2006, when Moody's assigned its MQ1 assessment.

Moody's MQ1 Investment Manager Quality assessment indicates a excellent management and control environment. The assessments, which are expressed using a scale from MQ1 to MQ5, incorporate Moody's assessment of an entity's investment management activities and other management characteristic, including, as applicable, the performance of its product offerings, its financial profile, and client servicing performance.

The principal methodology used in rating BB Gestão de Recursos DTVM S.A. (BB DTVM) was "Moody's Approach to Investment Manager Quality (MQ) Assessment of Asset Managers", published in August 2011. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

REGULATORY DISCLOSURES

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Diego KashiwakuraAsst Vice President - Analyst Managed Investments Group Moody's America Latina Ltda. Avenida Nacoes Unidas, 12.551 16th Floor, Room 1601Sao Paulo, SP 04578-903 Brazil JOURNALISTS: 800-891-2518 SUBSCRIBERS: 55-11-3043-7300Daniel Serrao Associate Managing Director Managed Investments Group JOURNALISTS: 212-553-0376 SUBSCRIBERS: 212-553-1653 Releasing Office: Moody's America Latina Ltda. Avenida Nacoes Unidas, 12.551 16th Floor, Room 1601Sao Paulo, SP 04578-903 Brazil JOURNALISTS: 800-891-2518 SUBSCRIBERS: 55-11-3043-7300(C) 2012 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved.

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