Fitch upgrades ProCredit Bank Georgia

Fitch Ratings said it upgraded ProCredit Bank Georgia's long-term issuer default ratings to BB+ from BB.

The outlook is stable.

The viability rating is unaffected.

The upgrade follows the upgrade of Georgia's sovereign rating to BB from BB-, Fitch said.

The upgrade reflects reduced Georgian country risks, as captured by the sovereign upgrade and greater likelihood that the bank will be able to receive and utilize support from its sole shareholder, ProCredit Holding AG & Co. KGaA, if needed, the agency said.

Fitch said it caps the bank's ratings at one notch higher than the sovereign rating to reflect the country risks that domestic banks are exposed to.

Georgia has relatively weak external finances and vulnerability to external shocks, which means that there would be a material risk of government intervention in the banking sector in case of extreme macroeconomic and sovereign stress scenarios, the agency said.

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