Fitch rates Erste & Steiermarkische BBB+

Fitch Ratings said it assigned Erste & Steiermarkische Bank dd a long-term foreign-currency issuer default rating of BBB+ with a stable outlook.

The bank's IDR reflects Fitch’s view of a high probability of support, if required, from its parent Erste Group Bank AG. At the same time, the bank’s long-term IDR is capped at the level of the country ceiling, two notches above Croatia’s BBB- sovereign long-term IDR, reflecting transfer and convertibility risks. Absent the country risk constraints, the bank would be rated one notch below the parent’s A rating, the agency said.

Fitch considers Erste to be the ultimate support provider for the bank. This is based on Erste's direct, 59% stake, and indirect, 41% through Steiermarkische Bank und Sparkassen AG, ownership of the Croatian subsidiary.

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