UniCredit Tiriac Bank’s long-term issuer default rating was affirmed at ‘BBB+’, with negative outlook, the statement noted.
“The affirmation of UniCredit Tiriac Bank’s ratings reflects Fitch’s continued view that the bank’s ultimate parent, Italy’s UniCredit S.p.A., would be likely to have a strong propensity to support the lender through UniCredit’s fully owned subsidiary, UniCredit Bank Austria AG,” Fitch said.
At the same time, the negative outlook on UniCredit Tiriac’s rating reflects that on the parent, it said.
The long-term rating on Banca Transilvania was affirmed at ‘BB-‘, with stable outlook.
“The rating is driven by the bank’s individual strength, reflected in its viability rating of ‘bb-‘, which reflects the bank’s strong deposit funding base, improving profitability and lower share of foreign-currency lending. Capitalization is adequate and internal capital generation is sound,” Fitch said.
Fitch also affirmed ProCredit Bank Romania’s long-term credit rating at ‘BB+’, with stable outlook.
The rating reflects Fitch’s opinion of potential support from its main shareholder, ProCredit Holding AG & Co KGaA, the agency said. The ratings could be upgraded or downgraded if the ratings of the mother bank changed, it noted.
Fitch said the Romanian banking system continues to suffer from weak economic activity at home and in the region, while exposure to turmoil in Greece and structural weaknesses remain potential risks.
“However, the capitalization of the Romanian banking sector is adequate and the liquidity position remained sound even at the bottom of the economic cycle,” Fitch said.
The rating agency expects the performance of the local banking system will stabilize in 2012-2013 as non-performing loans “should start to plateau in a slightly more benign operating environment.”