Fitch Ratings on September 19 affirmed Romania-based Banca Romaneasca S.A.’s (BROM) long-term foreign currency issuer default rating (IDR) at ‘BBB+’, outlook stable, the company informs in a press release.
Fitch also affirmed at ‘F2’ BROM’s short-term foreign currency IDR, and at ‘D’ its individual rating The long and short term issuer defaults and support ratings of BROM reflect the potential support available from its 89% parent, National Bank of Greece (NBG).
The individual rating reflects the bank’s small size, weak customer deposit franchise and the credit risks from its rapid expansion. It also reflects improvements made in risk management with guidance from its parent, comfortable liquidity and limited market risk.
Although the bank has been owned by NBG since 2003, extensive restructuring and branch network expansion began in 2005. These programmes are set to continue, as the bank intends to increase its market share from 2.7% at end-2007 to 4.5% at end-2009 through organic growth, which appears a challenging target in a market with intense competition.