Fitch lowers Zagrebacka to BBB-

Fitch Ratings said it downgraded Zagrebacka Banka dd's long-term issuer default rating to BBB- from BBB.

The outlook is stable.

The agency also placed the bank's viability rating of bb+ on Rating Watch Negative.

Fitch said Zagrebacka’s long- and short-term issuer default rating and support ratings are based on the potential support available from its ultimate parent, UniCredit SpA (BBB+/negative/bbb+).

Fitch believes that UniCredit continues to have a strong propensity to support Zagrebacka given the importance of the Central and Eastern Europe (CEE) region to its strategy and would normally rate Zagrebacka one notch below UniCredit’s issuer default rating.

However, Zagrebacka’s long-term issuer default rating is capped by the country ceiling of Croatia, which was lowered to BBB- from BBB on Aug. 8. The stable outlook mirrors that on the sovereign.

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