Core subsidiary of Banco Espirito Santo S.A. Strong position in investment banking in Portugal. Increasing geographic diversification. Positive profitability prospects from the international operations. Portuguese authorities' supportive stance--within the EU framework--toward the country's financial system. Very difficult economic, financial, and operating conditions in Portugal. Vulnerability to challenging funding markets, given its structurally high liquidity risk. Predominantly market-related revenue base, which introduces volatility risk into returns. Credit portfolio concentration in inherently riskier leveraged and project finance. High single-name concentration relative to core capital. The ratings on Portugal-based Banco Espirito Santo de Investimento, S.A. (BESI) are underpinned by Standard&Poor's Ratings Services' view of BESI's core status to Banco Espirito Santo, S.A. (BES; BBB-/Negative/A-3). They also benefit from BESI's strong position
