Fitch affirms Espirito Santo

Fitch Ratings said it affirmed Espirito Santo Financial Group's and Banco Espirito Santo's long-term issuer default and short-term ratings at A-/F2 and A+/F1, respectively. Their support ratings are affirmed at 5 and 2, respectively, and the bank's B individual rating is also affirmed. The outlooks for both are stable.

The affirmation follows the group's insurance activities, following which Espirito Santo Financial will reduce its economic interests in the bank to 29% from 32.8%, in Companhia de Seguros Tranquilidade Vida to 14.49% from 60.81% and in Espirito Santo Seguros to 32.24% from 53.42%. The holding company will also take full control of Companhia de Seguros Tranquilidade, which operates in the non-life insurance sector.

By bringing the life assurance interests directly under Banco Espirito Santo, the bank should be able to explore fully the considerable cross-selling opportunities that exist between the group's banking and insurance customers, the agency said.

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