...Support-Driven IDRs: UniCredit Bulbank AD's Issuer Default Ratings (IDRs) and Support Rating (SR) reflect a high probability of extraordinary support from the bank's owner, Italy's UniCredit S.p.A. (BBB+/Negative). This is primarily based on Fitch Ratings' view that Bulbank and the wider central and eastern Europe (CEE) region are strategically important for UniCredit. Bulbank's small size means that potential support should be manageable for UniCredit. The Negative Outlook on Bulbank's Long-Term IDR mirrors that on UniCredit. Stable Standalone Profile: Bulbank's Viability Rating (VR) reflects its leading domestic market franchise, solid profitability, strong capital buffers, robust funding and liquidity. Fitch also factors in Bulgaria's challenging operating environment, the bank's relatively high impaired loans ratio and overall moderate risk appetite compared with peers. The VR is underpinned by potential ordinary support available from the bank's parent. Leading Domestic Franchise:...
