...Support Driven IDR: ProCredit Bank (Bulgaria) EAD's (PCB Bulgaria) Issuer Default Ratings (IDRs) and Support Rating are driven by the high probability of support it can expect to receive form its 100% owner ProCredit Holding AG & Co. KGaA (PCH, BBB/Stable). The Stable Outlook mirrors that on PCH. Strategically Important Subsidiary: In assessing the support, Fitch views positively the strategic importance of Bulgaria and more broadly south-east Europe to the group, and the bank's role in and contribution to the group's performance. The high reputational risks that would arise from PCB Bulgaria's default provide a strong incentive for the parent to support the bank. In Fitch's view any support for PCB Bulgaria would be manageable for the parent. At end-2016, PCB Bulgaria accounted for a high 17% of PCH group's total assets. Small Franchise Hinders VR: PCB Bulgaria's Viability Rating (VR) is constrained by the bank's modest market franchise (3% of sector's assets at end-2016), although the...
