...Support-Driven IDRs: Allianz Bank Bulgaria AD's (ABB) Issuer Default Ratings (IDRs) and Support Rating reflect a high probability of support from its ultimate majority shareholder, Allianz SE (AA-/Stable). This is based on the parent's strong credit risk profile and ABB's small size relative to the parent. Limited Strategic Importance: ABB's Long-Term IDR is notched four times from that of Allianz due to Fitch Ratings' view of ABB's limited strategic importance. This is based on Allianz's strategic focus on insurance, with ABB its only banking subsidiary in central and eastern Europe (CEE), and ABB's marginal contribution to the parent group's profits. Whether ABB remains in the parent group in the long term depends on its contribution to Allianz's insurance and asset-management business and the bank's standalone performance, in our view. Weak Franchise Constrains VR: ABB's Viability Rating (VR) reflects its moderate risk appetite, better-than-sector asset quality, adequate capitalisation...
