S&P: BES on CreditWatch

Standard & Poor's said it placed on Credit Watch with negative implications BES Investimento do Brasil's global scale BBB- long-term and A-3 short-term ratings, along with its brAAA long-term and brA-1 short-term national scale credit ratings.

The CreditWatch listing follows the placement of its parent company, Banco Espirito Santo de Investimento SA, and its parent, Banco Espirito Santo SA, on CreditWatch with negative implications in December. That followed a similar action on the Republic of Portugal, the agency said.

The CreditWatch action takes into account that the rating action on the parents could have direct impact on the subsidiary ratings, S&P said.

The support that BES receives from its parents could come under pressure if the parents' ratings are downgraded, the agency said, and the potential strain on the bank's funding profile and financial flexibility.

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