Full ownership by and integration within Banco Espirito Santo S.A. Strong position in investment banking in Portugal. Growing geographic diversification. Predominantly market-related revenue base, which introduces volatility risk into returns. Fast-growing exposures to Brazil and inherently riskier leveraged and project finance. High level of risk concentration (relative to core capital) to 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-/Negative/A-2). They also benefit from BESI's strong position in investment banking in Portugal and increasing geographic diversification. Counterbalancing these factors are BESI's predominantly market-related revenue base, which introduces volatility risk into returns; high credit exposure to inherently riskier Brazilian obligors and
