Despite the Brazil's tough economy, domestic lender, Bradesco, has maintained its prominent position as a universal bank and its leading position in the insurance market, further strengthened by the acquisition of HSBC Bank Brasil. Although the bank's asset quality has deteriorated, it remains in line with the industry average and with our expectation. We expect Bradesco to expand its lending portfolio in 2017 at a modest peace due to weak economy and in line with the industry average, at below inflation rate. Real credit growth should pick up in 2018 as the economy recovers. We're affirming our 'BB/B' global scale and 'brAA-/brA-1' national scale ratings on Bradesco. The negative outlook on the bank reflects that on the sovereign because its
