Fitch affirms ProCredit Bank

Fitch Ratings said it affirmed Romania-based ProCredit Bank SA's foreign- and local-currency issuer default rating at BB+, short-term foreign- and local-currency rating at B, individual rating at D/E and support rating at 3.

The outlook is stable.

The ratings reflect the moderate probability of support ProCredit Bank can expect to receive in case of need from its largest shareholder, ProCredit Holding AG, which is rated BBB- with a stable outlook, Fitch said.

The bank's individual rating reflects its small size; its low, albeit improving, profitability and the risks, both credit and operational, from rapid loan growth. These are balanced by the benefits the bank receives from being part of a global network in terms of risk management expertise, as well as decent loan performance to date, the agency said.

Growth is essential for the bank, Fitch said, though clearly such rapid growth, as seen and planned, entails significant operational and credit risk. Close monitoring of the risks by the bank's parent company helps mitigate these concerns, Fitch said.

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