Sticky customer base and sound fee-based income generation due to its prominent role in executing public policies for the federal government; Diversified funding profile given the lender's large and stable retail deposit base and its administration of the national unemployment fund (FGTS); and Strong liquidity. Social role of some business lines and political influence could weaken performance; Risk-adjusted capital (RAC) ratio still weaker than peers; and High asset class concentration in real estate loans. The positive outlook on Caixa Economica Federal (Caixa) reflects prospects for an upgrade in the next two years of Brazil (BB-/Positive/B). We expect Caixa to maintain good asset quality metrics, with return on assets (ROA) of 0.9%-1.1% in the next two years. However, despite its 'bb'
