...Support-Driven IDRs: The IDRs and Support Rating of ProCredit Bank (Macedonia) (PCBM) 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. Stable Economic Outlook: Fitch Ratings forecasts real GDP in Macedonia to grow by 3.7% in 2015 (3.7% in 2014). This should support banking sector asset quality and growth. However, the operating environment remains potentially volatile due to structurally high unemployment, persistent political risk and the potential spillover impact of a slowdown in EU and eurozone economies. Moderate Franchise Limits Ratings: PCBM's Viability Rating (VR) reflects its relatively small size and moderate franchise in the Macedonian banking sector (4.5% share of sector assets at end-1H14). These hamper operating profitability due to a lack of economies of scale. Tighter...
