International ratings agency Fitch has confirmed the long-term issuer default rating (IDR) of Všeobecná Úverová Banka's (VÚB), one of Slovakia's main commercial banks, at BBB+ with a negative outlook, the TASR newswire reported, citing Fitch Ratings on Thursday, October 18. Meanwhile, the short-term rating of the bank was kept at 'F2' and the so-called support rating retained at '2',
VÚB's IDR and support rating were driven by potential support for the bank's Italian mother company, Intesa SanPaolo banking group, which is a 96.76-percent stakeholder in the bank. Intesa SanPaolo was given a rating of 'A-', only one grade higher than its subsidiary. The one-notch difference between the two indicates that Fitch views the subsidiary as strategic for the parent.
VÚB's standing was also underpinned by its solid results and the significant share that it contributed to Intesa SanPaolo's net profits – 3.9 percent between January and June 2012. Nevertheless, Fitch cautioned that VÚB's long-term IDR would probably be adjusted if there were to be a change in its parent bank's IDR. The negative outlook for VÚB's long-term IDR reflects that of the Italian banking group.
Compiled by Zuzana Vilikovská from press reports
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