Fitch has assessed Bulbank's stand-alone Viability Rating at 'bb+', one notch above the Bulgarian operating environment. The Rating is underpinned by the bank's robust capitalisation, stable funding and comfortable liquidity position. Fitch believes that near-term uncertainty arising from the coronavirus pandemic on asset quality and earnings is largely contained and lingering risks are outweighed by the country's recovery prospects, underpinned by a resilient economy.

With the recent upgrade, UniCredit Bulbank rating is now aligned with that of its parent UniCredit S.p.A.

The equalisation of Bulbank and UniCredit's ratings reflects (i) Bulgaria's entry to the Banking Union, as a result of which parent and subsidiary now share the same regulator and resolution authority; and (ii) the inclusion of UniCredit Bulbank in UniCredit's single point of entry (SPE) resolution group.

 

For further details please see Fitch Ratings' corresponding press release on the rating agency website www.fitchratings.com

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