As a general rule, a bank’s rating does not exceed the sovereign rating of the country in which it operates, because macroeconomic and political risks affect the entire financial system. Since banks finance companies and households, they are directly influenced by GDP developments, inflation, interest rates, government policies, and fiscal stability.
Context behind Banca Transilvania’s rating upgrade above Romania’s sovereign rating:
• Fitch has updated its assessment criteria for several banks in Central and Eastern Europe, including Banca Transilvania.
• The new methodology highlights BT’s resilience, supported by strong financial results and its capacity to absorb economic shocks.
• Since 2023, Banca Transilvania has raised nearly €4 billion through seven MREL-eligible bond issuances, strengthening its position as an active issuer on Romania’s and the region’s capital markets.
Fitch Ratings considers Banca Transilvania to be more resilient than the environment in which it operates, due to strong financial performance, very solid capitalization, access to international markets, and its funding strategy through MREL-eligible bonds.
At the same time, Fitch emphasizes that the bank’s Long-Term Issuer Default Rating remains influenced by Romania’s sovereign rating, whose outlook is still negative.
Other ratings assigned by Fitch to the bank
Fitch also assigned deposit ratings to Banca Transilvania:
• “BBB” for long-term deposits, one notch above the bank’s viability rating (“bbb-”), reflecting an additional level of protection for clients.
• “F3” for short-term deposits, maintained at the same level.
Access to international markets
Banca Transilvania has consistent access to international capital markets due to its robust financial profile and funding strategy, aspects highlighted by Fitch Ratings and which contributed to the upgrade of its long-term issuer rating.
In addition, the bank’s strong brand recognition and reputation further enhance investor confidence and facilitate access to financing under competitive conditions.