Banco RCI Brasil S.A.

CREDIT OPINION Banco RCI Brasil S.A. Semiannual Update Update Summary RATINGS Banco RCI Brasil S.A. Domicile Parana, Brazil Long Term Debt Not Assigned Long Term Deposit Ba3 Type LT Bank Deposits Fgn Curr Outlook Stable The baseline credit assessment (BCA) of ba3 assigned to Banco RCI Brasil S.A. (RCI Brasil) reflects its captive finance operation of automakers Renault and Nissan in Brazil as well as the inherently low risk of the bank's secured vehicle funding loan book. The bank's BCA is, however, constrained by its reliance on wholesale funding, comprised of debt issued in the domestic market and interbank deposits, and by its monoline business model. Moody's assigns a long term global local currency deposit rating of Ba1 to RCI Brasil which incorporates a two notch uplift from its BCA owing to Moody's assessment of a high likelihood of support deriving from the bank s French based parent RCI Banque (Baa1 stable, baa3) who owns 6.1% of the bank; Banco Santander Brasil S.A. owns the remaining 39.9% of RCI Brasil. Exhibit 1 Please see the ratings section at the end of this report for more information. The ratings and outlook shown reflect information as of the publication date. Banco RCI Brasil key Financial Ratios Bank RCI Brasil (BCA: ba3) Median ba1rated banks 6% 25% 5% Farooq Khan 5511343687 Analyst farooq.khan@moodys.com Alexandre 55113437356 Albuquerque AVPAnalyst alexandre.albuquerque@moodys.com Rafael B Amaral 5511343665 Associate Analyst rafael.amaral@moodys.com CLIENT SERVICES Americas 12125531653 Asia Pacific 8523551377 Japan 81354841 EMEA 44277725454 4% 15% 3% 1% 2% 5% 1% 1.9% 19.9% % Asset Risk: Problem Loans/ Gross Loans Capital: Tangible Common Equity/RiskWeighted Assets Solvency Factors (LHS) Source: Moody's Financial Metrics.8% Profitability: Net Income/ Tangible Assets 55.2% 3.2% Funding Structure: Market Funds/ Tangible Banking Assets Liquid Resources: Liquid Banking Assets/Tangible Banking Assets % Liquidity Factors (RHS) Liquidity Factors Contacts Solvency Factors 2%

Credit strengths Fully aligned integral part of Renault and Nissan Group's strategy and operations in Brazil Low delinquency levels from secured low risk vehicle loans and conservative underwriting standards in new car financing Adequate capital ratios following the formation of Banco RCI Brasil Credit challenges Funding derives mainly from debt issued in local market (Letras Financeiras and Letras de Cambio), Securitizations (FIDCs) and interbank deposits mainly from Banco Santander Monoline operation provides weak revenue diversification, which constrains the issuer's franchise Rating outlook The outlook on RCI Brasil's ratings is stable. The outlook on the bank's foreign currency deposit rating was changed to stable, from negative, on 16 March 217 following the change in outlook on Brazil's bond rating announced on 15 March 217. Factors that could lead to an upgrade Positive pressure on RCI Brasil's standalone BCA could derive from improved profitability metrics and asset quality indicators over the next 1218 months. A move to diversify its funding base and reduce concentration could also provide upward pressure on its rating. Factors that could lead to a downgrade A weakening of RCI Brasil's asset quality indicators and profitability resulting from continued deterioration in the economic scenario would have negative effect on the BCA. A downgrade of its parent's standalone BCA would lead to a downgrade of the bank's global local currency deposit rating. Key Indicators Exhibit 2 Banco RCI Brasil S.A. (Consolidated Financials) [1] Total Assets (BRL billion) Total Assets (USD billion) Tangible Common Equity (BRL billion) Tangible Common Equity (USD billion) Problem Loans / Gross Loans (%) Tangible Common Equity / Risk Weighted Assets (%) Problem Loans / (Tangible Common Equity + Loan Loss Reserve) (%) Net Interest Margin (%) PPI / Average RWA (%) Net Income / Tangible Assets (%) Cost / Income Ratio (%) Market Funds / Tangible Banking Assets (%) Liquid Banking Assets / Tangible Banking Assets (%) Gross Loans / Due to Customers (%) 12162 12152 12142 12132 1 3.1 1.1.3 1.9 9.8 7.5.8 39.2 55.2 3.2 253,535.6 3.1.8.7.2 3.5 76.1 1.9 87.6 11.2 3.3 34.6. 5.5 3.5 1.3.6.2 4. 53.4 2.9 39.2 2.1 2.1 161.5 3.3.9 4. 1.7.5.2 2.8 4. 2.8 192.7 9.3 1.8 12. 11.3.3 212 CAGR/Avg.3 36.4 22.24 27.44 14.44 3.5 56.56 4.35 14.65.6 2.5 28.85 17.55 2.55 253,535.65 [1] All figures and ratios are adjusted using Moody's standard adjustments [2] Basel III fullyloaded or transitional phasein; LOCAL GAAP [3] May include rounding differences due to scale of reported amounts [4] Compound Annual Growth Rate (%) based on time period presented for the latest accounting regime [5] Simple average of periods presented for the latest accounting regime. [6] Simple average of Basel III periods presented Source: Moody's Financial Metrics This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history. 2

Note: Data in the Key Indicators table from 213215 refers to the leasing company Companhia de Arrendamento Mercantil RCI Brasil S.A., before its name was changed to Banco RCI Brasil S.A. Detailed credit considerations ASSET QUALITY TO REMAIN HIGH GIVEN SECURED GRANULAR EXPOSURES Banco RCI Brasil's assigned score of ba2 for asset risk reflects the inherently low risk of its granular loan book, which has remained low relative to the system during Brazil's recession, despite the bank's recent deleveraging. As of December 216, RCI Brasil reported Banco RCI Brasil reported non performing loans of 1.9%, up from the 1.6% reported by the finance company in 215, but significantly lower than system wide ratios of over 3.5%. RCI Brasil maintains conservative credit standards for approving loans and management's close monitoring of operational risks have contributed to maintaining delinquency at low levels. By requiring down payments of up to 4% for new loans, the bank eliminates potentially weak credit holders. In terms of risk management, RCI Brasil follows guidelines established by the French based parent RCI Banque and by Banco Santander. The bank's compliance practices also mirror those of RCI Banque, including the use of systems that are linked to the parent. RCI Brasil uses a credit score developed by Banco Santander; however, credit evaluation is realized by local management, which uses methods formulated by its French parent in order to approve loan operations. CAPITAL WILL REMAIN ADEQUATE We assign a score of baa1 for RCI Brasil's capital score which reflects its sufficient level of solvency as shown by the bank's adjusted tangible common equity (TCE) to risk weighted assets ratio of 19.9% as of December 216, as calculated by Moody's. Historically, the finance company's total BIS ratio stood at 18.1% in December 215, a ratio well above the minimum regulatory capital requirement of 11%. In January 216, as a result of the incorporation of the finance company by RCI Brasil, the bank s equity was raised to BRL1.4 billion, from BRL814 million and as of June 216, RCI brasil reported shareholder's equity of BRL 1.3 billion. We consider the bank's capital to be adequate particularly considering the limited growth we expect in its loan book in light of the lagging effects that Brazil's recession will have on demand for new vehicles in 216 and 217. We also note that Banco RCI will continue to be fully consolidated by Banco Santander, even though it is not the majority shareholder, owning 39.89% of the bank's capital. PROFITABILITY TO BE CONSTRAINED BY LOW LOAN GROWTH AND STICKY PROVISION EXPENSES The ba2 score assigned to the bank's profitability reflects the challenges the bank faces to maintain its historically adequate levels in light of low expected loan growth and sticky credit costs. RCI Brasil's franchise is intrinsically linked to the operation of automakers Renault and Nissan, which allows the bank to benefit from discounts and subsidizes offered by the car makers. Conversely, as a result of being a captive finance operation, RCI Brasil has revenues that present low diversification and are originated from lending operations with consumers to finance the acquisition of vehicles, working capital financing to car dealers (floor plan financing) and also leasing. In 216, the bank reported a net income of BRL 79 million, which corresponds to a net income to tangible assets ratio of.8%, lower than its peers. HIGH RELIANCE ON MARKET FUNDING WITH LIMITED LIQUID ASSET HOLDINGS RCI Brasil's caa1 score for funding structure stems from its high reliance on confidence sensitive market funding which stood at 55% of its tangible banking assets as of December 216, and acts as challenge to its credit profile. In recent years, the finance company diversified its funding investor base and structure away from just bank deposits, and issued debt in the local market in the form of Letras Financeiras and Letras de Câmbio. As of December 216, around 75% of its total funding was made up by these two funding sources, with the remaining 26% in the form of interbank deposits. These deposits are also mainly provided by its minority shareholder Banco Santander, which was responsible for roughly 62% of RCI Brasil's deposits as of December 216. Although diversification efforts have been positive for the bank in terms of market access, its reliance on market funding with confidence sensitive institutional investors and depositor concentration remains particularly elevated versus peers. In addition, the bank 3

holds only a very low level of liquid assets, equivalent to 3.2% of its tangible banking assets, which serves as a very low buffer against its market funding reliance. QUALITATIVE ADJUSTMENTS RCI Brasil's has a narrow and specific monoline business model with no product diversification. In our view, the lack of business diversification adds more volatility to both the bank's asset risk and earnings structure compared to more diversified banks. To reflect this increased risk, we assign a qualitative adjustment of 1 for business diversification to RCI Brasil. RCI BRASIL'S RATING IS SUPPORTED BY Brazil's MODERATE MACRO PROFILE Brazil's Moderate macro profile reflects the country's large and diversified economy, strong international reserves, and the improved effectiveness of monetary policy. However, the country's economic performance remains weak following two years of recession. Following an aggressive expansion in lending, particularly at the public sector banks, which led to concerns of a possible credit bubble, lending has been contracting steadily since midyear 216 and asset risks have remained relatively contained despite the depth and length of the country's recession. The slowdown in lending has also limited banks' needs for market funding. Although government owned banks' account for a 56% share of the loan market, their growth rate has been consistently declining, which will help reduce pricing distortion created by their previous loose lending policies. Notching considerations In the absence of a bailin resolution regime framework in Brazil, the ratings of subordinated debts, bank hybrids, and contingent capital securities follow the Additional Notching Guidelines, as per the Global Banks Methodology. In these cases, the approach takes into account other features specific to debt classes, resulting in additional notching from the adjusted baseline credit assessment (BCA) of the issuer. Affiliate support In applying the jointdefault analysis, RCI Brasil's Ba1 local currency deposit rating benefits from a two notch uplift from the bank s standalone BCA of ba3. This uplift reflects Moody's assessment of a high likelihood of support from its parent, RCI Banque, based on the strategic focus shared between the parent and the bank. Government support We believe there is a low likelihood of government support for RCI Brasil's rated deposits that reflects the bank's small share of deposits and assets in Brazil's banking system. Counterparty risk assessment CR Assessments are opinions of how counterparty obligations are likely to be treated if a bank fails and are distinct from debt and deposit ratings in that they (1) consider only the risk of default rather than both the likelihood of default and the expected financial loss suffered in the event of default and (2) apply to counterparty obligations and contractual commitments rather than debt or deposit instruments. The CR assessment is an opinion of the counterparty risk related to a bank's covered bonds, contractual performance obligations (servicing), derivatives (e.g., swaps), letters of credit, guarantees and liquidity facilities. RCI Brasil's CR Assessment is positioned at Baa3(cr) and Prime3(cr), which is onenotch above the bank's Adjusted BCA of ba1, and, therefore, above the deposit rating of the bank, reflecting Moody's view that its probability of default is lower at the operating obligations than of deposits. The CR Assessment at RCI Brasil does not benefit from government support, as the government support is not incorporated in the bank's deposit ratings. About Moody's bank scorecard Our Scorecard is designed to capture, express and explain in summary form our Rating Committee's judgment. When read in conjunction with our research, a fulsome presentation of our judgment is expressed. As a result, the output of our Scorecard may materially differ from that suggested by raw data alone (though it has been calibrated to avoid the frequent need for strong divergence). The Scorecard output and the individual scores are discussed in rating committees and may be adjusted up or down to reflect conditions specific to each rated entity. 4

Rating Methodology and Scorecard Factors Exhibit 3 Banco RCI Brasil S.A. Macro Factors Weighted Macro Profile Moderate Factor 1% Historic Macro Ratio Adjusted Score Solvency Asset Risk Problem Loans / Gross Loans Capital TCE / RWA Profitability Net Income / Tangible Assets Credit Trend Assigned Score Key driver #1 Key driver #2 Expected trend 3.1% ba1 ba2 Sector concentration baa1 Riskweighted capitalisation.8% ba2 ba2 Earnings quality Combined Solvency Score Liquidity Funding Structure Market Funds / Tangible Banking Assets baa3 55.2% caa1 caa1 Extent of market funding reliance Liquid Resources Liquid Banking Assets / Tangible Banking Assets 3.2% caa2 caa2 Stock of liquid assets Combined Liquidity Score Financial Profile Business Diversification Opacity and Complexity Corporate Behavior Total Qualitative Adjustments Sovereign or Affiliate constraint: Scorecard Calculated BCA range Assigned BCA Affiliate Support notching Adjusted BCA Instrument class Counterparty Risk Assessment Deposits baa3 caa1 Loss Given Failure notching 1 caa1 ba2 1 1 Ba2 ba2b1 ba3 2 ba1 Additional Preliminary Rating Assessment Notching baa3 (cr) ba1 Government Support notching Local Currency Rating Baa3 (cr) Ba1 Foreign Currency Rating Ba3 Source: Moody's Financial Metrics Ratings Exhibit 4 Category BANCO RCI BRASIL S.A. Outlook Bank Deposits Fgn Curr Bank Deposits Dom Curr NSR Bank Deposits Baseline Credit Assessment Adjusted Baseline Credit Assessment Counterparty Risk Assessment Moody's Rating Stable Ba3/NP Ba1/NP Aaa.br/BR1 ba3 ba1 Baa3(cr)/P3(cr) ULT PARENT: RENAULT S.A. 5

Outlook Issuer Rating Senior Unsecured Commercial Paper Dom Curr Other Short Term Dom Curr Stable Baa3 Baa3 P3 (P)P3 PARENT: RCI BANQUE Outlook Bank Deposits Baseline Credit Assessment Adjusted Baseline Credit Assessment Counterparty Risk Assessment Senior Unsecured Subordinate MTN Dom Curr Commercial Paper Other Short Term Dom Curr Stable Baa1/P2 baa3 baa3 A3(cr)/P2(cr) Baa1 (P)Ba1 P2 (P)P2 Source: Moody's Investors Service 6

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CLIENT SERVICES 8 Americas 12125531653 Asia Pacific 8523551377 Japan 81354841 EMEA 44277725454