BAKU, Azerbaijan, May 2
By Tamilla Mammadova - Trend:
Fitch Ratings (Fitch) has revised the Outlook on ProCredit Bank Georgia's (PCBG) Long-Term Issuer Default Ratings (IDRs) from Stable to Negative and affirmed the IDRs at 'BB ', Trend reports citing the Fitch's report.
The revision of the Outlook to Negative follows the revision of the Outlook on Georgia's sovereign rating from Stable to Negative.
The affirmation of PCBG's IDRs at 'BB+' and Support Rating at '3' reflects Fitch's view that ProCredit Holding AG & Co will continue to have a high propensity to provide support to its Georgian subsidiary given its high importance to the group, full ownership, common branding, strong integration and a record of capital and liquidity support.
Fitch caps PCBG's ratings at one notch above the 'BB' Georgian sovereign rating to reflect the country risks that domestic banks are exposed to.
"In our view, in case of extreme macroeconomic and sovereign stress, these risks could limit PCBG's ability to service its obligations or the parent's propensity to continue providing support, or both," the Fitch said.
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