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-/Negative/A-2). They also benefit from BESI's strong position in investment banking in Portugal and increasing geographic diversification. Counterbalancing these factors are BESI's predominantly market-related revenue base, which introduces volatility risk into returns; high credit exposure to inherently riskier Brazilian obligors and to leveraged and project finance; and excessive risk concentration to its biggest borrowers. Standard&Poor's Ratings Services equalizes the ratings on BESI with those on BES, reflecting the potential parent support it would receive as a core subsidiary. BESI's core status within the BES group is underpinned by its full ownership by and
