Fitch upgrades outlook of Romanian banks BCR-Erste and BRD-SocGen
International rating agency Fitch has revised the outlooks on Banca Comerciala Romana (BCR) and BRD-Groupe Societe Generale (BRD) long-term Issuer Default Ratings (IDRs) to stable from negative and affirmed the IDRs at BBB+.
iulian ernst · Journalist
· Updated · 1 min read
International rating agency Fitch has revised the outlooks on Banca Comerciala Romana (BCR) and BRD-Groupe Societe Generale (BRD) long-term Issuer Default Ratings (IDRs) to stable from negative and affirmed the IDRs at BBB+.
The rating actions follow the revision of the outlook on the Romanian sovereign rating on March 24, 2023.
The affirmation of BCR's and BRD's IDRs and Shareholder Support Ratings (SSRs) reflects Fitch's view that the banks' shareholders, Erste Group Bank (A/Stable/a) and Societe Generale. (A-/Stable/a-), respectively, will continue to have a solid propensity to provide support to their subsidiary banks.
BCR's and BRD's Long Term IDRs remain capped by Romania's Country Ceiling, which captures transfer and convertibility risks that may limit the ability of BCR and BRD to use the support from their parent banks. Absent of these constraints, BCR would be rated one notch below the parent, and BRD would be equalised with the IDR of its parent.
(Photo source: Dreamstime.com)
