...Institutional Support Drives IDRs: The Issuer Default Ratings (IDRs) and Support Rating (SR) of ProCredit Bank AD Skopje (PCBNM) are driven by a high probability of support from its 100% owner, ProCredit Holding AG & Co. KGaA (PCH, BBB/Stable). The extent to which support can be factored into PCBNM's ratings is moderately constrained by North Macedonia 's country risks and in turn its Country Ceiling of `BBB-'. The Negative Outlook on PCBNM's IDRs mirrors that on the North Macedonia's sovereign rating. Challenging Operating Environment: PCBNM's Viability Rating (VR) reflects the risks related to the operating environment, exposing bank's performance to market shocks, which cannot be fully mitigated by the benefits of the prudent risk management framework, unique corporate culture and strong corporate governance implemented across the PCH group. These risks are exacerbated by the economic and social implications of the pandemic. Asset Quality Deterioration Likely: Asset-quality metrics have...
