(The following statement was released by the rating agency)
LONDON, March 28 (Fitch) Fitch Ratings has affirmed
Slovenia-based Banka Koper
(BK)'s Long-term foreign currency Issuer Default Rating (IDR) at
Outlook is Negative. A full list of rating actions is at the end
KEY RATING DRIVERS AND SENSITIVITIES: IDRS AND SUPPORT RATING
The affirmation of BK's Long-term IDR at 'BBB' and Support
Rating at '2'
reflects Fitch's view that Intesa Sanpaolo (Intesa;
BBB+/Negative) will continue
to have a strong propensity to support its subsidiaries in the
Eastern Europe (CEE) region, notwithstanding its primary focus
on the Italian
The Negative Outlook on BK's Long-term IDR mirrors that on
Intesa. The Long-term
IDR could be downgraded if the parent is downgraded, or if there
is evidence of
a reduced commitment on the part of Intesa to the CEE region.
KEY RATING DRIVERS AND RATING SENSITIVITIES: VIABILITY RATING
The affirmation of BK's 'bb' VR reflects recent deposit growth,
strengthened the bank's funding position, healthy liquidity,
capitalisation, and only moderate asset quality problems. BK has
the highest VR
among Fitch-rated banks in Slovenia reflecting its superior risk
framework, credit underwriting and corporate governance compared
with peers, in
part due to its ownership by Intesa.
However, there is still some downside risk to the VR in light of
the weak and
uncertain operating environment in Slovenia and significant
concentrations. BK's VR could be downgraded in the event of a
deterioration in asset quality that erodes capital. An upgrade
of the VR is
unlikely in the foreseeable future.
The rating actions are as follows:
Long-term foreign currency IDR: affirmed at 'BBB', Negative
Short-term foreign currency IDR: affirmed at 'F3'
Support Rating: affirmed at '2'
Viability Rating: affirmed at 'bb'
+44 20 3530 1008
Fitch Ratings Limited
30 North Colonnade
London E14 5GN
Michal Bryks, ACCA
+48 22 338 6293
James Watson, CFA
+7 495 956 9901
Media Relations: Hannah Huntly, London, Tel: +44 20 3530 1153,
Additional information is available at www.fitchratings.com.
Applicable criteria, Global Financial Institutions Rating
Criteria, dated 15
August 2012, Rating FI Subsidiaries and Holding Companies, dated
10 August 2012,
Evaluating Corporate Governance Criteria, dated 12 December
2012, are available
Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
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