TEXT-S&P affirms Bradesco Seguros 'brAAA' rating

Fri Sep 7, 2012 2:20pm EDT

Overview
     -- On Aug. 28, 2012, we affirmed our global scale 'BBB/A-2' and national 
scale 'brAAA/brA-1' ratings on Banco Bradesco S.A., parent of
Bradesco Seguros S.A.
     -- We are affirming the core group status and our national scale 
financial strength and issuer credit ratings of 'brAAA' on Bradesco Seguros, 
the insurance arm of Bradesco.
     -- The outlook on Bradesco Serguros S.A. rating remains stable, in line 
with the outlook on its parent.

Rating Action
On Sept. 7, 2012, Standard & Poor's Ratings Services affirmed its 'brAAA' 
national scale ratings on Bradesco Seguros S.A. The outlook on the rating 
remains stable.

Rationale
The rating on the insurance subsidiary are based on its core positioning 
within the Brazilian bank Bradesco, according to Standard & Poor's group 
rating methodology. The insurance business is core to the group's strategy of 
diversification of business and it represents about 31% of the group's results 
as of June 2012. There is integration in terms of strategy and operations and 
the insurance products are sold through the bank's branches.

The group's commitment to the subsidiary shows through the capital 
contributions it makes whenever it is necessary to support the insurance 
operations. In December 2011, the group made a capital injection of Brazilian 
reais (R$) 180,000 and we expect further capitalizations for 2012.

The ratings on Banco Bradesco are underpinned by the bank's very strong and 
diversified franchise in Brazil, its capable management, and its adequate 
funding and liquidity. Partly offsetting these strengths are our assessment of 
Bradesco's capitalization as moderate and the highly competitive environment 
in which it operates.

Outlook
The stable outlook on Bradesco Seguros S.A. mirrors that of its parent, and a 
rating action on the insurance subsidiary would depend on a rating action at 
the parent level. The stable outlook reflects Standard & Poor's expectation 
that Bradesco will maintain its "very strong" business position as Brazil's 
second-largest private bank, stable levels of nonperforming loans, and 
adequate earnings generation in the next two years. A rating action on the 
bank would depend on a similar action on the sovereign, as long as we continue 
to view Bradesco's stand-alone credit profile as 'bbb+'.

Related Criteria And Research
     -- Research Update: Banco Bradesco S.A. 'BBB/A-2' Ratings Affirmed, 
Outlook Stable 
     -- Group Rating Methodology And Assumptions, Nov.9, 2011

Ratings List

Bradesco Seguros S.A.
 Counterparty Credit Rating
  National Scale                        brAAA/Stable/--
Financial Strength Rating
  National Scale                        brAAA/Stable/--    


Complete ratings information is available to subscribers of RatingsDirect on 
the Global Credit Portal at www.globalcreditportal.com. All ratings affected 
by this rating action can be found on Standard & Poor's public Web site at 
www.standardandpoors.com. Use the Ratings search box located in the left 
column.