... (Bradseg; BB+/Negative) Issuer-Default Rating (IDR) is aligned with the ratings of its parent, Banco Bradesco S.A. (Bradesco; BB+/Negative), which is one notch above Brazil's sovereign ratings (BB/Stable). Bradseg's Negative Outlook mirrors that of Bradesco, reflecting Bradesco's credit quality indicators, which remain higher than those of its local peers, despite recent improvements. The bank has effectively implemented a strategy to enhance its product mix, reduced its provision expenses throughout 2024 and improved its margins. The bank continues to take strong measures to improve its ratios and Fitch Ratings believes these indicators should return to better levels in 2025, while profitability continues to improve. In applying Fitch's insurance criteria regarding the impact of ownership on Bradseg's ratings, Fitch considered how the ratings would theoretically be affected under Fitch's bank support criteria. Fitch's insurance criteria...
