Full ownership by and integration within Banco Espirito Santo S.A.; Strong position in investment banking in Portugal; Sound stand-alone capitalization; and Adequate asset quality. A predominantly market-related revenue base, which introduces volatility risk into returns; Meaningful credit exposure (relative to core capital) to inherently riskier Brazilian debtors; and High level of risk concentration (relative to core capital) in the largest borrowers. The ratings are underpinned by Banco Espirito Santo de Investimento, S.A.'s (BESI) full ownership by and integration within Banco Espirito Santo S.A. (BES, A-/Stable/A-2). They also benefit from BESI's strong position in investment banking in Portugal, sound stand-alone capitalization, and adequate asset quality. Counterbalancing these factors are BESI's predominantly market-related revenue base, which introduces volatility risk into returns; meaningful
