...Parent Support Drives IDRs: ProCredit Bank S.A.'s (PCBR) Long-Term Issuer Default Rating (IDR) and Support Rating are driven by potential support from its parent, ProCredit Holding AG & Co. KGaA (PCH; BBB/Stable). PCBR's Long-Term IDR is one notch below that of its parent based on the strategic importance of the south-east Europe (SEE) region to the parent, as well as a record of capital and liquidity support. The Stable Outlook reflects that of the parent. Company Profile Constrains VR: PCBR Viability Rating (VR) of `b+' predominantly reflects the bank's limited franchise and scale, which constrain internal capital generation capacity and result in low diversification of revenues and a relatively high cost base. Performance is supported by moderate and relatively stable loan impairment charges. Asset Quality Outperforms Sector: PCBR's regulatory non-performing loan (NPL) ratio (EBA definition) was 5.2% at end-1H16 compared with the sector average of 13.5%. The key to the bank's asset quality...
