Fitch may improve viability rating of UniCredit Romania following merger with Alpha Bank

Fitch Ratings has affirmed UniCredit Bank Romania's (UCBRO) Long-Term Issuer Default Rating (IDR) at BBB with a stable outlook and maintained the bb Viability Rating (VR) on Rating Watch Positive (RWP).

VR reflects the bank's moderate franchise and weaker profitability than larger domestic peers. It also considers its satisfactory asset quality, strong capitalisation and stable funding and liquidity.

The RWP on UCBRO's VR reflects the potential benefits to its standalone credit profile from the announced merger with Alpha Bank Romania S.A. (ABR).

Fitch will resolve the RWP on completion of the merger, which may extend beyond the typical six months for a Rating Watch resolution.

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