The ratings on Espirito Santo Financial Group S.A. (ESFG) are underpinned by the holding company's moderate leverage and by the solid franchises in Portuguese financial services of the group's two main operating entities, Banco Espirito Santo S.A. (BES, A-/Stable/A-2) and Companhia de Seguros Tranquilidade S.A. (Tranquilidade). ESFG's creditworthiness also benefits from the ability to draw resources from BES, although the bank's contribution to the group's profitability is limited by a substantial proportion of minority shareholdings in the bank's ownership structure. The group's creditworthiness is weakened by Tranquilidade, whose weight in the group has grown in 2001. ESFG is incorporated in Luxembourg, although it is supervised on a consolidated basis by Bank of Portugal (Portuguese central bank and BES' main supervisor)....
Companies mentioned in this report are:
- Espirito Santo Financial Group S.A.
- Banco Espirito Santo S.A.
- BES Finance Ltd.
- Companhia de Seguros Tranquilidade S.A.
- Banque Espirito Santo et de la Venetie
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