Very strong and diversified franchise in Brazil with a market-leading banking franchise, diversified and resilient earnings, and good track record amid slow economic expansion in Brazil; and Low-cost, diversified and stable funding base that supports the business during market distress. Moderate capitalization; however, slower portfolio growth relieves pressure on risk-adjusted capital (RAC); Challenging competitive environment as public banks boost their participation in the system; and High concentration in Brazil, with limited international diversification. The stable outlook on Brazil-based bank Banco Bradesco S.A. (Bradesco) reflects that on the sovereign, as ratings on Bradesco are limited by the rating on the sovereign, given its significant exposure to Brazilian Government debt. We rarely rate these entities above the sovereign long-term rating because, during
