Fitch Affirms SocGen’s Romanian Unit BRD at 'A-', Outlook Negative

The long-term issuer default rating (IDR) of the Romanian bank is affirmed at 'A-', the short-term IDR at 'F2', and the support rating at '1', Fitch said in a statement.

“The IDRs and support rating reflect the support BRD can expect to receive from its majority shareholder, Societe Generale, in case of need. A change in Societe Generale's ability and/or willingness to support BRD could affect the latter's IDRs and support rating,” Fitch said in the statement.

However, the IDRs are constrained by Romania's country ceiling 'A-' and the outlook on BRD reflects that of the sovereign.

As Fitch has not undertaken a full review of the bank, an individual rating has not been assigned.

BRD, one of the 40 banks operating in Romania, has more than 2.5 million customers. It had a network of over 800 branches at the end of the first quarter. The bank posted a net profit of 917 million lei ($325 million/238 million euro) last year, up 40%.

BRD held a 15.5% market share in terms of assets at the end of 2007, ranking second after Banca Comerciala Romania, majority-owned by Austria’s Erste.

The bank is included in the 10-share blue-chip BET index of the Bucharest Stock Exchange (BVB). Its shares closed up 1.84% at 8.3 lei on Thursday. The BVB has not started trading in shares and derivatives on Friday.

(1 euro = 3.8096 Romanian lei)