... AD's (PCB) IDRs are based on Fitch Ratings' view that the bank is a strategically important subsidiary of its 100% owner, ProCredit Holding AG & Co. KGaA (PCH; BBB/Stable/bb-), and that there is a high probability that PCH would support PCB if needed. PCH Group Participation: PCB's track record of asset quality through the cycle, good corporate governance and relatively conservative risk management benefit from the bank's participation in the PCH Group. The PCH Group is subject to supervision by the German regulator. VR Reflects Small Franchise: PCB's Viability Rating (VR) reflects the bank's small size and limited franchise in the Bulgarian banking sector (1.6% of sector assets at end-1Q14). These hamper operating profitability from a lack of benefits of scale. However, operating profitability has improved, and PCB has outperformed the Bulgarian banking sector profitability which is still dragged down by high loan impairment charges (LICs)....
