...Parental Support Drives IDRs: Zagrebacka Banka d.d.'s (ZABA) IDRs are driven by potential support available from its ultimate parent, UniCredit S.p.A. (UC, BBB+/Stable, Viability Rating bbb+). UC owns ZABA via UniCredit Bank Austria AG (A/Negative, which owns 84.87% of ZABA). Integrated into UC: Fitch views ZABA as a strategically important subsidiary for UC. UC's commitment to ZABA has been evidenced through the substantial technical and managerial integration between ZABA and UC (as well as the wider group) and also the capital and funding made available to ZABA to date. Fitch believes UC will continue to have a high propensity to support ZABA given the strategic importance of central and eastern Europe (CEE) for UC. Systemic Importance: ZABA is the largest bank in Croatia, with around 26% market share in loans and deposits in the Croatian banking system. Prolonged Recession Puts Pressure: Fitch expects Croatia's recessionary operating environment to continue in 2014, with only 0.6% GDP...
