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.