...Rating Driven by Support: The Issuer Default Ratings (IDRs) and Support Rating of ProCredit Bank (Bulgaria) EAD (PCBB) reflect Fitch Ratings' belief that its parent, ProCredit Holding AG & Co. KGaA (PCH, BBB/Stable), is highly likely to offer support, if required. The agency views the bank as strategically important to PCH, which is based on its 100% ownership, the importance of south-eastern Europe (SEE) to PCH, strong integration with the parent, and a record of capital and liquidity support. Weak Franchise Constrains Viability Rating: The bank's modest franchise, which is weaker than that of most medium-sized Bulgarian universal banks, limits its standalone Viability Rating (VR). This primarily results from PCBB's less-diversified business model entirely focused on serving small- and medium-sized enterprises (SMEs). PCBB accounted for 1.8% of Bulgarian banking sector's total assets at end-1H16. Strong Profitability in Difficult Environment: PCBB's operating environment is likely to remain...
