Fitch Affirms Bulgarian Development Bank at 'BBB'; Outlook Stable
Fitch Ratings said on Thursday that it has affirmed state-owned Bulgarian Development Bank's (BDB) Long-Term Issuer Default Rating (IDR) and Support Rating Floor (SRF) at 'BBB', as well as its Short-Term IDR at 'F2' and Support Rating (SR) at '2'. The affirmation reflects the lack of major changes regarding the agency's assessment of the Bulgarian sovereign's propensity or ability to support the bank, Fitch Ratings said in a statement. Fitch Ratings also said in its statement:"KEY RATING DRIVERS IDRS, SR, SRFBDB's IDRs and SRF are equalised with those of the Bulgarian sovereign (BBB/Stable). The bank's SR of '2' reflects Fitch's belief of a high probability of support from the Bulgarian sovereign, in case of need. The state's strong economic incentive to support BDB is mainly driven by its almost 100% ownership of the bank and significant funding from (or guaranteed by) the state. Our view also considers the bank's role in supporting the government's economic policy. The Stable Outlook mirrors that on the Bulgarian sovereign.