Fitch Affirms Bulgarian Development Bank at 'BBB-', Stable Outlook
Thursday, 19 September 2013
Fitch Ratings said it has affirmed state-owned Bulgarian Development Bank's (BDB) long-term issuer default rating (IDR) at 'BBB-', short-term IDR at 'F3', support rating at '2', and support rating floor at 'BBB-'.
The outlook on the long-term IDR is stable, the ratings agency said in a statement.
“Fitch does not assign a Viability Rating to BDB due to its policy role and limited scope of purely commercial activities,” it added.
BDB's ratings reflect Fitch's opinion that there continues to be a high probability of support for the bank from the Bulgarian state, if required, due to BDB's policy role and 99.99% state ownership. Moreover, the bank's relative small size (about 2% of Bulgarian GDP) and low leverage limit potential contingent liability for the sovereign in the near future.