Moody’s Investor Service has issued an “investment grade” rating on Banco Bradesco Europa’s deposits, the first time the agency has separately evaluated the Luxembourg-based banking unit.

On Wednesday evening Moody’s issued an “A3” credit score on local currency deposits, the seventh highest rating on its 21 level scale which denotes “very low credit risk”, and a “Baa2” credit score on foreign currency deposits, the ninth highest rating which indicates a “moderate credit risk”. The figures evaluate BBE’s ability to repay bank deposits not covered by an official insurance scheme.

Moody’s added that “the ratings of BBE carry a positive outlook in line with the outlook on its parent’s ratings,” meaning it does not believe the unit will be downgraded in the foreseeable future. “Given BBE’s integrated management and role as a service provider in Europe for the Bradesco group, the parent bank’s financial performance and creditworthiness have material influence over BBE’s financial profile and profitability, and thus, its risk profile.”

However, the credit ratings agency warned that any downgrade of its parent company’s score “will have a direct bearing on BBE’s deposit ratings.”

Earlier this year, a survey by Bloomberg News found that Banco Bradesco, Latin America’s second largest bank by market value, had the most investment bank analyst “buy” recommendations of any company included in Brazil’s main Bovespa stock market index.

Banco Bradesco has been present in the Grand Duchy since 2001 via acquisitions of Banco Banespa International and Banco Mercantil de São Paulo. In 2011, BBE, its wholly-owned Luxembourg unit, became the European and Middle Eastern headquarters for the firm’s commercial, investment and private banking operations, as well as the IT hub for all private banking activity outside the Americas.

“In addition, the bank administers and supports the distribution in Europe of the group’s investment funds (SICAVs),” Moody’s observed. “BBE has also started to develop its own business independently from the rest of the group, which is currently small.”

Last year BBE chief Jean Philippe Leroy told Delano that there is plenty of room left for Bradesco to grow in the Grand Duchy.