Fitch rates ProCredit bank BBB

Fitch Ratings said it assigned a long-term issuer default rating of BBB with a stable outlook to ProCredit Bank AG, along with a short-term issuer default rating of F2.

The ratings are driven by institutional support from its parent, ProCredit Holding AG & Co. KGaA, Fitch said.

The agency said it does not assign a viability rating because the bank does not have a meaningful standalone franchise, and its operations rely strongly on integration within the broader group.

The equalization of the bank's ratings with its parent's ratings is due to a high likelihood of parental support, Fitch explained.

This view is based primarily on the bank's treasury role within the group and a strong legal commitment in the form of a profit and loss sharing agreement, which obliges ProCredit Holding to replenish the bank's equity should the latter suffer a loss.

The stable outlook reflects the same outlook on the parent company, Fitch said.

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