...Support-Driven IDRs: The IDRs and Support Rating of ProCredit Bank d.d. Sarajevo (ProCredit Bank (Bosnia & Herzegovina); PCBiH) 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. However, the extent to which such support can be factored into PCBiH's IDRs is constrained by Fitch's assessment of risks relating to Bosnia. Performance Constraints: PCBiH's `b-` Viability Rating (VR) reflects franchise limitations and the bank's small scale, which along with the competitive pressures and challenging operating environment constrains profitability. A high, but reducing, cost base weighs on the overall performance, which in 1H14 was further affected by a spike in loan impairment charges (LICs) due to asset quality deterioration. PCBiH is following through with operating and funding cost optimisation...
