Very strong and diversified franchise in Brazil, with a market-leading banking franchise, diversified earnings, and good track record Low-cost, diversified and stable funding base that supports the business during market distress Weak capitalization, although slower portfolio growth relieves pressure on risk-adjusted capital (RAC) Challenging credit environment as across-the-board asset quality pressure jeopardizes returns and leads to more refinancing High business concentration in Brazil, with limited international diversification. The negative outlook reflects our view that the ratings on Banco Bradesco S.A. should move in tandem with those on the sovereign. There is a greater than one–in–three likelihood that we could lower the ratings on Brazil again. Our outlook also incorporates potential further downgrades of S&P Global Ratings' Banking Industry Country Risk
