Fitch Ratings-London-17 March 2010: Fitch Ratings has today affirmed Unicredit Bulbank's (UCB) Support Rating at '2'.

The rating reflects the high probability of support, should it ever be required, from Unicredit

Bulbank's ultimate shareholder, Unicredit S.p.A (UC, rated 'A'/Outlook Negative). UC owns a

92.1% take in UCB, held indirectly through its 96.3%-owned subsidiary, UniCredit Bank Austria AG (rated 'A'/Outlook Stable).

UCB's Support Rating is constrained by Bulgaria's Country Ceiling 'BBB+'. Therefore, any

upside/downside in the Support Rating would be linked to a change in the Country Ceiling. A

significant deterioration in UC's propensity and/or ability to support UCB could also result in a downgrade of the Support Rating.

UCB reported net income of BGN197.4m in 2009 (down 30% y-o-y), due to slower loan growth amid a slowdown in the Bulgarian economy, tightening net interest margins and higher loan impairment charges due to worsening asset quality. Fitch, however, notes that the bank's reported loans in arrears over 90 days/gross loans of 4% at end-2009 (up from 1.8% a year ago), remains below the sector average of 6.4% at end-2009. Given an operating environment that remains challenging for banks in Bulgaria, Fitch expects continued pressure on UCB's profitability and on asset quality.

UCB reported adequate tier 1 capital ratio of 13.4% at end-2009; up from 10.3% a year ago, with equity being boosted by the bank's decision to retain its 2008 earnings.

UCB is the largest bank in Bulgaria by total assets, with a market share of about 16% at end-2009. It has a nationwide network of 234 branches and serves about 1.1 million clients.