...Support-Driven IDRs: The IDRs and Support Rating of ProCredit Bank (Albania) (PCBA) reflect the likelihood of support from its parent, ProCredit Holding AG & Co. KGaA (PCH; BBB/ Stable). The support considerations take into account the majority ownership, common branding, strong parental integration and a track record of previous support. However, the extent to which such support can be factored into PCBA's IDRs is constrained by Fitch Ratings' assessment of risks relating to Albania. Difficult Operating Environment: PCBA's Viability Rating (VR) takes into account the high risks from the operating environment that weigh on the bank's medium-term growth prospects and leave its performance, asset quality and, potentially, capitalisation vulnerable to domestic market shocks. Concentrated NPL Growth: Growth in loans overdue by 90 days (PAR90; 8.8% at end-9M14) has been driven by a small number of lumpy loans, which the bank is addressing. Excluding these, asset quality is reasonable, and the...
