Fitch affirms ratings of 3 Bulgarian banks, keeps MKBU on rating watch negative.

By bne IntelliNews July 10, 2012
Fitch Ratings has affirmed the ratings of Bulgaria's banks Societe Generale Express Bank (SGE), Allianz Bank Bulgaria (ABB )and ProCredit Bank (Bulgaria) AD (PCB) assigning a stable outlook, while at the same time it kept MKB UnionBank (MKBU) on Rating Watch Negative (RWN), the rating agency said in a statement. The Long-term Issuer Default Ratings (IDRs) of SGE and of ABB were affirmed at BBB+ and of PCB at BB+. The short-term IDRs of SGE and ABB were affirmed at F2 and of PCB at B. PCB's Viability Rating (VR) was raised to bb- from b+. Fitch has also maintained MKBU's Long term IDR of 'BBB+' on RWN. The IDRs and Support Ratings of SGE, ABB, MKBU and PCB are driven by the high probability that banks will be supported by their majority shareholders, if required, Fitch said. SGE is wholly owned by France's Societe Generale, ABB is majority owned by Germany's Allianz SE and PCB is owned by ProCredit Holding. MKBU's direct shareholder is MKB Bank Hungary, in turn owned by Bayerische Landesbank. The ratings of MKB and ABB could be downgraded if their parent banks decide to sell them, the rating agency said.

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