...Support Driven IDR: United Bulgarian Bank AD's (UBB) Issuer Default Ratings (IDRs) and Support Rating (SR) reflect the extremely high probability that it would be supported by its parent, KBC Bank NV (KBC, A+/Negative) if needed. This reflects the strategic importance of Bulgarian market to KBC, a high level of management and operational integration with the parent, and reputational risks in the event of UBB's default. In Fitch Ratings' view any support for UBB would be immaterial for KBC. Country Ceiling Constrains IDR: UBB's IDR is capped by Bulgaria's Country Ceiling of 'A-', two notches above the Bulgarian sovereign rating (BBB/Stable). But for the Country Ceiling, UBB would be notched down once from the parent's IDR. The Stable Outlook on UBB's IDR reflects that on the Bulgarian sovereign IDR. Operating Environment Risks Rise: We believe that the risks of the Bulgarian operating environment have increased due to the economic implications of the coronavirus. The small Bulgarian economy...
