Following the regulatory approval of Banco Bradesco's acquisition of HSBC Bank Brasil, we have incorporated the latter into a combined financial statement. This combined statement includes an estimated goodwill, which combined to capital pressures observed before the acquisition was approved, led us to revise Bradesco's capital and earnings score to weak from moderate. As a result, we have lowered Bradesco's stand-alone credit profile (SACP) to 'bbb-' from 'bbb'. As Bradesco's SACP remains above Brazil's sovereign ratings, and we rarely rate banks above the sovereign, the revised capital and earnings score has no impact on the bank's credit ratings. These ratings remain capped by the sovereign ratings of Brazil. We are affirming our 'BB/B' global scale and 'brAA-/brA-1' national scale ratings
