Fitch cuts ratings of UBB, Eurobank EFG Bulgaria to B+.

By bne IntelliNews May 27, 2011
International credit rating agency Fitch has lowered the long-term issuer default ratings (IDR) of countrys third largest United Bulgarian Bank (UBB, the local subsidiary of the National Bank of Greece) and fifth largest Eurobank EFG Bulgaria (part of Greeces EFG Eurobank Ergasias S.A.) to B+ from BB and have placed them on rating watch negative, the Agency informed in a note on its website. The action follows a recent downgrade of their parents and reflects weaker ability of the above Greek banks to provide financial support to their subsidiaries in case of need. The IDRs of UBB and Eurobank EFG Bulgaria reflect the assessment of Fitch of their stand-alone strength, which has been undermined by significant asset quality deterioration. At the same time, the capital adequacy ratios have remained above requirements. The rating watch negative reflects Fitchs view that the local banks' credit portfolios will be closely linked to those of their parents. Any further deterioration at the parent banks will affect their support to the subsidiaries and the ability of the subsidiaries to raise funds from other sources. Also, Fitch informs that it has withdrawn the ratings of Eurobank EFG Bulgaria on demand of the local lender.
Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

EC urges Bulgaria to comply with EU rules on free movement of capital.

The EC has sent a reasoned opinion to Bulgaria over failure to comply with EU rules on the free movement of capital, the EC said on its website. The privatisation act in Bulgaria introduces ... more

Govt seeks delay of antitrust rules violation procedure against Bulgaria.

Bulgaria will be seeking an extension of the court procedure filed by the EC against the country over irregularities found in the assignment of digital broadcast spectrum, transport minister ... more

Bulgarians hold EUR 100mn in deposits in Cyprus.

Bulgarian individuals and companies hold EUR 100mn in Cypriot banks according to ECB data, BTA reported quoting Reuters. The largest EU depositors in the crisis-hit country are Greece with EUR ... more

Most Read

  1. Romanian developers get in the game
    3 days ago
  2. Putin and Trump trying to walk back Syria strike and sanctions tensions
    4 days ago
  3. What’s the cost of US sanctions on Russia?
    5 days ago
  4. E-commerce dramatically eats into foot traffic at Moscow’s leading shopping malls
    16 days ago
  5. Romania entrepreneur aims to put home-grown UAV defence technology industry on the map
    5 days ago
  1. Fears raised of US conditioning F-35s sale on Turkey cancelling S-400 deal with Russia
    25 days ago
  2. COMMENT: Whisper it – ‘Erdonomics’ could be driving Turkey to a meltdown
    12 days ago
  3. Romanian developers get in the game
    3 days ago
  4. KRUK REPORT: Nadia Savchenko, Ukraine’s fallen hero
    30 days ago
  5. Putin and Trump trying to walk back Syria strike and sanctions tensions
    4 days ago

Selected articles from our premium news/views wire IntelliNews Pro

Login to IntelliNews Pro
Get IntelliNews Pro

Reports

Notice: Undefined index: subject_id in /var/www/html/application/controllers/IndexController.php on line 335
Dismiss