Very strong and diversified franchise in Brazil; Stable and capable management; and Adequate funding and liquidity position. Moderate capitalization; and Tough, competitive environment. The stable outlook reflects Standard&Poor's expectation that Banco Bradeso S.A. (Bradesco) will maintain its "very strong" business position as Brazil's second-largest private bank, stable levels of nonperforming loans, and adequate earnings generation in the next two years. A rating action on the bank would depend on a similar action on the sovereign, as long as we continue to view Bradesco's stand-alone credit profile as 'bbb+'. The ratings on Bradesco reflect its "very strong" business position, "moderate" capital and earnings, "adequate" risk position, "average" funding, and "adequate" liquidity. Banks: Rating Methodology And Assumptions, Nov. 9, 2011
