...Parent Support Drives IDRs: The Issuer Default Ratings (IDRs) and Support Ratings of Banca Comerciala Romana S.A. (BCR) reflect the high likelihood of support from its 93.6% owner Erste Group Bank AG (A-/Stable/a-). Fitch Ratings views the Romanian subsidiary and the wider central and eastern European region as strategically important for Erste, which results in a one-notch difference between the parent's and BCR's Long-Term IDRs. Improved Loan-Quality Metrics: The risk from BCR's stock of legacy impaired loans has decreased as higher total reserve coverage (91% at end-1H17) shields earnings and capital from further portfolio clean-up actions. Fitch expects BCR's non-performing loans (NPL) ratio to continue to subside to mid-high single digits over the next two years, although the pace is likely to be slower than in 2015 and 2016, when the bank booked large portfolio sales. Lower Risk to Earnings: Fitch considers that earnings volatility and the risk stemming from asset-quality charges...
