...Parental Support Drives IDRs: The IDRs and Support Rating of Allianz Bank Bulgaria AD (ABB) are driven by Fitch Ratings' view of the potential support available to ABB from its ultimate majority shareholder, Allianz SE (AA-/Stable). This reflects possible reputational risks to Allianz from the bank's default, ABB's very small size relative to its parent, and the owner's support track record. Allianz holds a 66.2% stake in ABB through Allianz Bulgaria Holding. Limited Strategic Importance: Fitch views ABB as a subsidiary of only limited strategic importance to its parent and therefore maintains a wider notching between Allianz's and ABB's Long-Term IDRs. This is based on Allianz's focus on insurance business, with ABB its only banking subsidiary in central and eastern Europe, and ABB's marginal contribution to the parent group's profits. Fitch believes that Allianz has no intention to sell the Bulgarian subsidiary. However, in our view, whether ABB remains in the parent group in the long...
