Research Update: Portuguese Banco Espirito Santo de Investimento S.A. Assigned 'A-/A-2' Ratings; Outlook Stable Jan 05
- ID: 1810412
- January 2005
- Region: Portugal
- Standard & Poors
On Jan. 17, 2005, Standard & Poor's Ratings Services assigned its 'A-' long-term and 'A-2' short-term counterparty credit ratings to Banco Espirito Santo de Investimento, S.A. (BESI), the investment-banking unit of Portuguese Banco Espirito Santo S.A. (BES, A-/Stable/A-2). The ratings are underpinned by BESI's full ownership by and integration within BES. They also benefit from BESI's strong position in investment banking in Portugal, sound stand-alone capitalization, and adequate asset quality. Counterbalancing these factors are BESI's predominantly market-related revenue base (which introduces volatility risk into returns); meaningful credit exposure (relative to core capital) to inherently riskier Brazilian debtors, mainly through its majority-owned Brazilian subsidiary; and high risk concentration (relative to core capital) in the biggest borrowers. BESI's core status within the...
Companies mentioned in this report are:
- Banco Espirito Santo de Investimento S.A.
- Banco Espirito Santo S.A.
Action: New Rating
Action: Outlook: Stable
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Product Type: Research Update
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