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Banco Espirito Santo de Investimento, S.A. Jul 11
Standard & Poors, July 2011
Abstract
Core subsidiary of Banco Espirito Santo S.A. Strong position in investment banking in Portugal. Increasing geographic diversification. Positive profitability prospects from the international operations. Portuguese authorities' supportive stance--within the EU framework--toward the country's financial system. Very difficult economic, financial, and operating conditions in Portugal. Vulnerability to challenging funding markets, given its structurally high liquidity risk. Predominantly market-related revenue base, which introduces volatility risk into returns. Credit portfolio concentration in inherently riskier leveraged and project finance. High single-name concentration relative to core capital. The ratings on Portugal-based Banco Espirito Santo de Investimento, S.A. (BESI) are underpinned by Standard & Poor's Ratings Services' view of BESI's core status to Banco Espirito Santo, S.A. (BES; BBB-/Negative/A-3). They also benefit from BESI's strong position...
Companies mentioned in this report are: Banco Espirito Santo de Investimento S.A.,Banco Espirito Santo S.A.,BES Finance Ltd.,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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