Fitch lowers ratings of UBB, Eurobank EFG Bulgaria on parents downgrade.

By bne IntelliNews December 11, 2009
International credit rating agency Fitch lowered the ratings of two local banks: the countrys third and fifth largest United Bulgarian Bank (UBB) and Eurobank EFG Bulgaria, after downgrading their Greek parents, a note on the website of the Agency reads. The long-term issuer default ratings (IDR) of the two local lenders were cut by one notch to BBB from BBB+ and the short-term IDR were downgraded by one notch as well to F3 from F2. The outlook on the long-term rating of UBB is stable while the outlook of the Eurobank EFG Bulgaria is negative. The individual ratings of the Bulgarian banks were affirmed at D and the support ratings were affirmed at 2. Fitch comments that the Greek banks willingness to support their local subsidiaries has remained unchanged but their ability to do so has been reduced. Earlier in the week, Fitch reduced the rating of the National Bank of Greece (parent of UBB) and EFG Eurobank Ergasias (parent of Eurobank EFG Bulgaria) from A- to BBB+ on sovereign rating action.

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

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