...Support Drives IDRs: ProCredit Bank (Bulgaria) EAD's (PCBB) Issuer Default Ratings (IDRs) reflect the high probability of support from its parent, ProCredit Holding AG & Co. KGaA (PCH, BBB/Stable). Our view on support considers the strategic importance of southeast Europe to PCH, high reputational risks arising from PCBB's default and its contribution to PCH's results. Small Franchise Constrains Viability Rating: PCBB's overall franchise is small as the bank accounts for a modest about 2% market share by total assets at end-1H18. However, the bank's foothold in the Bulgarian SME segment is fairly strong and benefits from its membership of the ProCredit Group. The Viability Rating (VR) also takes into consideration PCBB's robust capital buffers, moderate risk appetite, low refinancing risks, moderate profitability and the challenging operating environment in Bulgaria. Superior Asset Quality: PCBB's loan book quality has been the most resilient through the cycle, due to its focused business...
