23 Jun Banco Central do Brasil – Circular N° 4.028

June 23, 2020 – Banco Central do Brasil, issued Circular N° 4.028 which provides information about the purchase and sale of private assets in national secondary markets, within the financial, capital and payment markets, by Banco Central do Brasil. Private assets are eligible for the transactions covered by this Circular, which, at the time of purchase by the Central Bank of Brazil have:

1. A rating in the category of credit risk in the local market equivalent to BB- or higher, conferred by at least one of the three largest international rating agencies; and
2. Present a reference price published by a financial market entity accredited by the Central Bank of Brazil. The classification in the category of credit risk in the local market will follow the criterion of equivalence between the three largest international rating agencies, in the form of Annex 1 of this Circular.

The Brazilian Association of Financial and Capital Markets Entities (Anbima) and B3 S.A. – Brasil, Bolsa, Balcão are considered financial market entities accredited by the Central Bank of Brazil

Jurisdictions affected: Brazil

For more information, visit Banco Central do Brasil