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Banco Espirito Santo, S.A. May 11
Standard & Poors, May 2011
Abstract
Strong position and competitive edge in Portuguese retail banking. Sensible strategy. Anticipated good operating performance of the international operations. Portuguese authorities' supportive stance--in the EU framework--toward the country's financial system. Very difficult economic, financial, and operating conditions in Portugal, which will likely weaken BES' financial profile. Increased vulnerability to challenging funding markets, given BES' high reliance on wholesale funding. Structurally higher proportion of market-related income than domestic peers'. Significant market risk arising directly from long-term equity holdings and indirectly from pension fund commitments. Limited financial flexibility of ultimate controlling shareholder Espirito Santo Financial Group. The ratings on Banco Espirito Santo, S.A. (BES) benefit from what Standard & Poor's Ratings Services considers to be BES' strong business profile, management's sensible strategy...
Companies mentioned in this report are: Banco Espirito Santo S.A.,Portugal (Republic of),BES Finance Ltd.,Banco Espirito Santo de Investimento S.A.,Espirito Santo Investment PLC,BES Investimento do Brasil
Action: Review
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
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