Fitch Ratings has revised the Rating Outlook on the Local Currency Long-Term Issuer Default Rating (IDR) of
The National Long-Term Rating of '
Key Rating Drivers
Support-Driven Ratings: Bradseg's IDRs are aligned with the ratings of its parent, Bradesco. The Outlook for Bradseg's IDR mirrors Bradesco's, which is one notch above
In applying Fitch's insurance criteria regarding the impact of ownership on Bradseg' ratings, Fitch considered how the ratings would theoretically be affected under Fitch's bank support criteria. Fitch's insurance criteria are principles-based regarding ownership, and the referenced bank criteria was used to help inform Fitch's judgment in applying those principles.
Core Subsidiary: Fitch views Bradseg as a 'core subsidiary' of Bradesco, and therefore its ratings are equalized with those of its parent. This is based on the strategic importance of Bradseg's insurance operations, which complement the main retail banking activities, common branding and high contribution of Bradseg to group profits. The insurance holding company has consistently contributed to the bank's consolidated earnings historically.
Robust Market Position: The rating also reflects the company's leading position, consistent performance and diversified revenue base. Bradseg had a leading position and overall market share of approximately 22.7% as of
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive rating action/upgrade:
Bradseg's IDR has limited upside potential, as it is equalized to that of
For the national scale rating, this sensitivity is not applicable, given that the National LT rating of Bradseg was affirmed at '
Factors that could, individually or collectively, lead to negative rating action/downgrade:
Bradseg's ratings are linked to those of
Bradseg's National Ratings are sensitive to changes in creditworthiness relative to other Brazilian issuers.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
Public Ratings with Credit Linkage to other ratings
Bradseg's rating are directly linked to the IDR of
RATING ACTIONS
Entity / Debt
Rating
Prior
LC LT IDR
BB+
Affirmed
BB+
Natl LT
Affirmed
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