...Parent Support Drives IDR: Allianz Bank Bulgaria AD's (ABB) Issuer Default Rating (IDR) reflects Fitch' opinion that there is a high probability the bank would be supported, if required, by Allianz SE (Allianz; AA-/Stable), its ultimate majority owner. While any support for the bank would be immaterial relative to the ultimate parent's resources, the four-notch difference between Allianz's IDR and ABB's mainly reflects our view that ABB's strategic importance to Allianz is limited. The Stable Outlook on ABB's IDR reflects that on the parent. Amplified Operating Environment Risks: We believe that the risks of the Bulgarian operating environment have increased due to the economic implications of the coronavirus. The small Bulgarian economy is significantly exposed to the economic impact of the pandemic, which presents a near-term downside risk to its performance and underpins our negative outlook on the assessment of the operating environment for Bulgarian banks. Small Franchise Constrains...
