...IDRs Driven by Parent Support: The Issuer Default Ratings (IDRs) and Support Rating of ProCredit Bank AD Skopje (PCBM) reflect the likelihood of support from its Germany-based parent, ProCredit Holding AG & Co. KGaA (PCH, BBB/Stable). This is based on 100% ownership by the parent, the strategic importance of south-eastern Europe to PCH, strong integration within the parent group, and a record of capital and liquidity support. Negative Outlook Reflects Sovereign: PCBM's IDRs are at the Macedonian Country Ceiling (BBB-) and above the Macedonia's Long-Term Foreign-Currency IDR (BB+), as Fitch Ratings believes there is strong support from PCH and, if needed, from PCH's core international financial institution shareholders, which would probably allow PCBM to withstand financial stress in the local market. Stable Financial Performance: Medium-term performance will mostly depend on a pick-up in loan volumes to compensate for continuing margin pressure and continued asset-quality control translating...
