The international rating agency Fitch Ratings has affirmed the Long-Term Issuer Default Rating (IDRs) of United Bulgarian Bank (UBB), being “А-” with stable outlook and short-term rating at „F1“. UBB’s rating has been upgraded to the highest level for a financial institution in Bulgaria as early as in 2017 after its acquisition by the Belgian bank-assurance group KBC. In March 2020 Fitch placed UBB’s rating Under Criteria Observation (UCO) after publication of the agency’s updated bank rating criteria.
The affirmation of UBB’s high assessment reflects the opinion of Fitch that the Bank can rely on support, thanks to its synergy with the Belgian parent company KBC, which in its turn has “A+” rating with stable outlook. The rating agency takes into account the solid capitalization of the bank, the stable financing and its liquidity profile, as well as the considerable restructuring of its impaired legacy loans. The assessment takes into account the moderate risk appetite and the strengthening of the company’s profile (in particular the sale of bad loans), its management and strategy, steered by КВС.
“The affirmation of UBB’s long-term rating by Fitch is a proof of the successful development of United Bulgarian Bank, of the stability and long-term prospects of КВС’s business in Bulgaria as one of the core markets of the Group.“, shared Peter Andronov, Management Board Chairman and Chief Executive Officer of UBB.
Detailed description of UBB’s ratings, affirmed by Fitch, are presented on the agency’s webpage and their nutshell presentation is the following: Long-term rating: “A-” with stable outlook, Short-term rating: “F1”; Support Rating: “1”; Viability Rating: “bb”.
We remind you that a month ago that same rating agency made a new assessment of Bulgaria, affirming its sovereign debt rating at “BBB”, however amending the outlook from „positive“ to „stable“.