...Support-Driven IDRs: The IDRs and Support Rating of Allianz Bank Bulgaria AD (ABB) reflect Fitch Ratings' view that ABB would be supported, if needed, by its majority owner, Allianz SE (AA-/Stable). This stems from the potential reputational damage to the parent from the bank's default, the relative very small size of ABB, and the parent's record of support in the past. ABB's IDRs are not constrained by Bulgaria's Country Ceiling. The notching between Allianz's and ABB's IDRs is based on Fitch's view of ABB's only limited importance to its parent due to Allianz's focus on insurance activities, limited banking operations in central and eastern Europe (CEE) and ABB's marginal share of Allianz group's profits. Fitch understands that Allianz has no intention to sell ABB. However, in the agency's view, whether ABB remains in the parent group in the long term depends on its contribution to Allianz's core insurance and asset management business and its standalone performance. Limited Franchise...
