Update: Banco Bradesco S.A.

The stable outlook on our rating on Bradesco reflects the outlook on Brazil over the next two years. The ratings on the latter constrain those on financial institutions, given their exposure to sovereign risk. Therefore, we expect the ratings on Bradesco to continue to move in tandem with the sovereign ratings. We would likely raise the ratings on Bradesco following a similar action on the sovereign ratings. Absent sovereign constraints, the bank could have a higher rating, given its stronger credit fundamentals, reflected in its higher stand-alone credit profile than the rating on the sovereign. We would likely downgrade the bank following a similar action on the sovereign. General Criteria: National And Regional Scale Credit Ratings Methodology, June 8, 2023

...As one of the largest financial groups in Brazil, we believe Bradesco's business resilience continues to benefit from its strong franchise. Bradesco's sound position in the banking and insurance industries in Brazil, with significant domestic market shares in both sectors, contribute to its sound business stability, which we view as a rating strength. As the second-largest private bank in Brazil, with Brazilian real (R$) 1.9 trillion in assets as of September 2023, and the largest insurance group in the country, Bradesco benefits from the synergies of its product offerings and continues to expand the services it offers to clients. In addition, Bradesco's leading position in the insurance industry contributes to the group's business diversity and helps offset potential downturns in credit cycles....

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