...Support-Driven IDRs: United Bulgarian Bank AD's (UBB) Long-Term Issuer Default Rating (IDR) and Support Rating reflect Fitch's opinion that there is a high probability that the bank would be supported, if required, by KBC Bank (A/Stable), its 99.9% shareholder. Country Ceiling Constrains IDR: UBB could be rated within one notch of its parent were it not for the constraint from Bulgaria's Country Ceiling, which caps UBB's Long-Term IDR at 'BBB+'. Consequently, the Positive Outlook on UBB reflects that on the Bulgarian sovereign rating. Strategically Important for KBC: We believe there will be strong synergies between UBB and its new parent because Bulgaria is one of KBC's four strategically important markets in central and eastern Europe. With the UBB acquisition (June 2017), KBC achieved its strategic target of a significant market share (about 11%, third place) in Bulgaria. Fitch believes any required support for UBB would be immaterial relative to KBC's ability to provide it because of...
