Very strong and diversified franchise in Brazil; Stable and capable management; and Adequate funding and liquidity. Moderate capitalization; and Tough, competitive environment. Standard&Poor's bases its ratings on Banco Bradesco S.A. on the company's "very strong" business position, "moderate" capital and earnings, "adequate" risk position, "average" funding, and "adequate" liquidity (as our criteria define them). The 'bbb' anchor draws on our Banking Industry Country Risk Assessment (BICRA) methodology and our view of the economic and industry risk in Brazil, where Bradesco operates. The indicative BICRA for Brazil is group '4', according to our criteria. One of the factors we base the BICRA group on is our evaluation of economic risk. In our opinion, economic improvements and cautious fiscal and
