The ratings on Portugal-based Banco Espirito Santo de Investimento, S.A. (BESI) are underpinned by full ownership by and integration within Banco Espirito Santo, S.A. (BES; A/Stable/A-1). They also benefit from BESI's strong position in investment banking in Portugal. Counterbalancing these factors are BESI predominantly market-related revenue base, which introduces volatility risk into returns; meaningful credit exposure (relative to core capital) to inherently riskier leveraged finance and Brazilian debtors, ; and high risk concentration (relative to core capital) at the biggest borrowers. BESI's core status within the BES group is underpinned by its full ownership by and integration within the latter; the bank effectively operates as a division within BES' wholesale activities. Credit and market risk management are integrated with those
