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Fitch Withdraws 4 CEE Banks' Support Ratings
June 11, 2014 / 3:11 PM / 3 years ago

Fitch Withdraws 4 CEE Banks' Support Ratings

(The following statement was released by the rating agency) WARSAW/LONDON, June 11 (Fitch) Fitch Ratings has withdrawn the Support Ratings of four central and eastern European banks. The Support Ratings were affirmed prior to withdrawal for Hungary-based OTP Bank Plc's (OTP) at '3', Croatia-based Privredna Banka Zagreb d.d. (PBZ) at '2' and Bulgaria-based UniCredit Bulbank AD (UCB) at '2'. The '2' Support Rating of Hungary-based MKB Bank Zrt (MKB) was maintained on Rating Watch Negative (RWN) upon withdrawal. The agency has simultaneously withdrawn the Support Ratings of all banks. Fitch has decided to discontinue the ratings which are uncompensated. Accordingly, Fitch will no longer provide ratings or analytical coverage of the issuers. KEY RATING DRIVERS The affirmation of OTP's Support Rating at '3' reflects a moderate probability that the Hungarian sovereign (BB+/Stable) would support OTP if needed, in light of its systemic importance in the domestic banking sector. At end-1Q14, OTP was the largest bank in Hungary and accounted for 27% of sector assets and 25% of deposits. MKB's Support Rating of '2' reflects a high probability that Bayerische Landesbank (A+/Negative) would support the bank as long as it remains its majority owner. The RWN on the Support Rating reflects the owner's plan to divest MKB (planned by end-2015) as part of restructuring programme agreed with the European Commission. PBZ's and UCB's Support Ratings of '2' reflect a high probability that both banks would be supported by their parents, Intesa Sanpaolo (BBB+/Stable) and UniCredit S.p.A. ( BBB+/Negative), respectively, if required. Fitch views PBZ and UCB as strategically important subsidiaries for their parents. Contact: Primary Analysts Michal Bryks, ACCA (MKB, OTP) Director +48 22338 6293 Fitch Polska SA Krolewska 16, Warsaw 00-103 Banu Cartmell (PBZ, UCB) Director +44 20 3530 11 09 Fitch Ratings Limited 30 North Colonnade London E14 5GN Secondary Analyst Agata Gryglewicz Associate Director +48 42 338 6970 Committee Chairperson Artur Szeski Senior Director +48 22 338 6292 Media Relations: Hannah Huntly, London, Tel: +44 20 3530 1153, Email: hannah.huntly@fitchratings.com. Additional information is available on www.fitchratings.com. Applicable criteria, 'Global Financial Institutions Rating Criteria' dated 31 January 2014, are available at www.fitchratings.com. Applicable Criteria and Related Research: Global Financial Institutions Rating Criteria here Additional Disclosure Solicitation Status here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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