Fitch Downgrades Two Bulgarian Banks
March 4th, 2010
Fitch global rating agency downgraded Greece’s four largest banks to ‘BBB’ with negative prognosis, with the agency saying that the imposition of a restrictive financial policy by the Greek government could have a negative effect on loans and possible incomes, the BBC said.
Fitch reduced to BBB/F3 from BBB+/F2 the long- and short-term ratings on the National Bank of Greece, Alpha Bank, EFG Eurobank Ergasias and Piraeus Bank.
A day later, on February 24 2010, Fitch cut two of their Bulgarian divisions, the agency said in a statement quoted by Reuters, Dnevnik said.
Fitch downgraded to BBB- from BBB its long-term rating on United Bulgarian Bank (UBB) and Postbank, while updating its rating on the two banks’ short-term debt to F2 from F3.
While the Bulgarian lenders continue to rely on support from their parent companies if needed, their capabilities reduce thanks to the lower assessment, the agency said.
Meanwhile, the published consolidated reports of Bulgarian-American Credit Bank showed a slump year-on-year by 59.1 per cent to 21.17 million leva, while Corporate Commercial Bank’s profit increased by 58.1 per cent to 63.65 million leva in 2009, Pari daily reported on February 25.
Story from Sofia Echo
