One of the largest privately-owned banks in Brazil with a market-leading franchise, diversified earnings and a good track record amid Brazil's recession; and Low-cost, diversified, and stable funding base that supports the business during market distress. Across the board, asset quality pressure in Brazil should continue denting Bradesco's profits, given the bank's extremely high credit exposure to the country; Moderate capitalization levels, with decreasing quality of capital as DTAs (deferred tax assets) account for more than half its net worth; and Significant reliance on net interest margin (NIM) results. The negative outlook reflects our view that the ratings on Bradesco should move in tandem with those on the sovereign, and there is a greater than one–in–three likelihood that we could
