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Fitch Ratings has Upgraded ProCredit Bank Bulgaria

June 25, 2014

The international ratings agency Fitch Ratings has upgraded the Long-term foreign currency Issuer Default Rating (IDR) and the Long-term local currency IDR of ProCredit Bank Bulgaria from ‘BB+’ to ‘BBB-’ with Stable outlook. In addition to that, the ratings agency has confirmed a Viability Rating ‘bb-’. The upgrade reflects Fitch’s reinforced view of the potential support by the Bank’s sole shareholder, Frankfurt am Main-based ProCredit Holding (‘BBB” / stable outlook).

ProCredit Bank Bulgaria’s long-term IDR upgrade reflects its systematic and sound risk management framework, high assets quality that has outperformed its home sector, diversified deposit base of savings of small and medium-sized enterprises and private persons, and a comfortable liquidity buffer. In its commentary Fitch notes that the quality and level of capital at ProCredit Bank Bulgaria is improving, following the introduction of the new capital requirement regulatory framework of banks in the European Union in the beginning of this year.

The upgrade by the international ratings agency comes in times, when Bulgaria’s rating has been degraded based on the unstable political environment and lack of reforms. Considering this and the overall economic stagnation in the country, ProCredit Bank Bulgaria’s rating upgrade is a confirmation of its soundness as an institution and its unique role in the Bulgarian financial market.