...Support-Driven IDRs: Grupo Cooperativo Cajas Rurales Unidas (Grupo CRU) IDRs are based on Fitch Ratings assumption that there is a moderate probability for the group to receive support from Spain if needed. The Outlook on Grupo CRUs Long-Term IDR is Negative because the probability of receiving state support is likely to decline in the next two years. Viability Rating Downgraded: In 2013 asset quality and earnings generation capacity weakened beyond Fitchs expectations and pressured Grupo CRUs capitalisation, driving the one notch downgrade of the Viability Ratings (VR) to ,,bb-. The VR also reflects the groups leading regional franchise in southeast Spain and improved funding and liquidity profile. NPL Increase Above Expectations: Asset quality deterioration in 2013 was beyond Fitchs expectation and remains a source of risk. The company will have to make provisions for problem assets, including foreclosed assets (FA), in the coming quarters. At end-2013 Grupo CRUs NPL ratio rose to 18.8%...
