...Support-Driven IDRs: The Issuer Default Ratings (IDRs) of ProCredit Bank Sh.a. (PCBK) reflect the likelihood of potential support from its owner, ProCredit Holding AG & Co. KGaA (PCH, BBB/Stable). Fitch Ratings believes that PCBK is strategically important to the ProCredit group and remains an integral part of its south-eastern European franchise. However, the extent to which possible support can be factored into PCBK's ratings is constrained by Fitch's assessment of risks relating to Kosovo, in particular transfer and convertibility risks. Challenging Operating Backdrop: PCBK's Viability Rating (VR) continues to reflect risks stemming from its operations in Kosovo, exposing bank's performance to inherent market shocks, which cannot be fully offset by the benefits from being part of the ProCredit group. These risks are intensified by the economic and social implications of the pandemic. PCBK's VR also considers the bank's high market shares domestically, conservative risk appetite and solid...
