Very strong and diversified franchise in Brazil; Stable and qualified management; and Adequate funding and liquidity position. Moderate capitalization; and Challenging, competitive environment. The negative outlook on the global scale ratings on Brazil-based bank Banco Bradesco S.A.(Bradesco) is based on that of Brazil. Therefore, any changes in the ratings on the sovereign may affect the ratings on Bradesco. Additionally, any change in the bank's "adequate" risk position—because of delinquency growth, or changes its "moderate" capital and earnings--due to lower-than-expected capitalization, could weaken the bank's 'bbb+' stand-alone credit profile. Our ratings on Bradesco reflect the 'bbb' anchor that we apply to banks operating in Brazil and our view of Bradesco's "very strong" business position, "moderate" capital and earnings, "adequate" risk position,
