Fitch revises to negative the outlook of Romanian banks BCR, BRD

International rating agency Fitch affirmed the ratings of Banca Comerciala Romana (BCR) and BRD-Groupe Societe Generale (BRD) at BBB+ but revised to negative from stable their outlook. The action reflects the agency's view on Romania’s entire banking system and is not restricted to the two banks as Fitch fears the Government would take even tighter steps against banks to settle own debt financing issues. Fitch explained that it expects to soon cap the ratings of Romanian banks at one notch above the Romanian sovereign (BBB-/Stable), rather than two notches at present. This possible change in Fitch's view is driven by a series of recently proposed or adopted legislative measures, which could have a significant negative impact on banks, the most acute being a special tax on bank assets. The risk of government intervention in the Romanian banking sector, in case of a sovereign default, is rising under the rating agency’s scenario, and this would negatively affect the banks' ability to service their obligations. Fitch has also affirmed the ratings of UniCredit Bank at 'BBB-' with a negative outlook, and of Banca Transilvania at 'BB+' with a stable outlook. Fitch affirms rating for Bucharest municipality editor@romania-insider.com (photo source: Pixabay.com)