...Shareholder Support Drives Ratings: Fitch Ratings' view of the support ProCredit Holding AG & Co. KGaA (PCH) can receive from its core international financial institution (IFI) shareholders drives its Issuer Default Ratings (IDRs). This view is based on their long-term and strategic commitment, as highlighted by their role within PCH's structure, and record of debt and capital support. Exposure to Emerging Markets: PCH's Viability Rating (VR) reflects the group's exposure to difficult emerging-market environments, relatively narrow franchises of the subsidiary banks in their respective jurisdictions (with some exceptions) and the inherent credit risks in PCH's business model based on lending to SMEs. Capitalisation Improved: The group's capitalisation has improved significantly following the equity injection completed in late 2016. The Fitch Core Capital (FCC) ratio increased to 14.2% at end-September 2017 from 10.95% at end-2015, although it remains moderate relative to the risks the group...
