Full ownership by and integration within Banco Espirito Santo S.A. Strong position in investment banking in Portugal Good operating efficiency Fast-growing exposures toward inherently high-risk Brazilian debtors and leveraged and project finance A predominantly market-related revenue base, which introduces volatility risk into returns High level of risk concentration (relative to core capital) at the largest borrowers The ratings on Portugal-based Banco Espirito Santo de Investimento, S.A. (BESI) are underpinned by full ownership by and integration within Banco Espirito Santo S.A. (BES; A/Stable/A-1). 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 credit exposure (relative
