The ratings on Espirito Santo Financial Group S.A. (ESFG) balance the following: The higher weight that the group's weak insurance operations, Companhia de Seguros Tranquilidade S.A. (Tranquilidade; BBpi) and Companhia de Seguros Tranquilidade-Vida S.A. (Tranquilidade-Vida; not rated) have in economic terms for ESFG as it holds about two-thirds of the insurance companies economic rights; and The benefits of ESFG's ability to draw resources from Banco Espirito Santo S.A. (BES; A-/negative/A-2), albeit within the limits of the existence of substantial minority shareholders?as ESFG only holds 33% economic rights in BES?and regulatory limits for lending to shareholders and preserving regulatory minimum capitalization. The ratings also take into account ESFG's and its subsidiary holding companies' high degree of leverage, stemming from relatively limited...
Companies mentioned in this report are:
- Espirito Santo Financial Group S.A.
- Banco Espirito Santo S.A.
- Companhia de Seguros Tranquilidade S.A.
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