Fitch Downgrades Five Bulgarian Banks' Ratings

The outlooks on four of the five banks are now stable following the rating action, Fitch said in a statement.

Bulgaria's sovereign ratings were downgraded to long-term foreign Issuer Default (IDR) 'BBB-' from 'BBB' and long-term local currency IDR 'BBB' from 'BBB+'. The country ceiling was downgraded to 'BBB+' from 'A-'.

Allianz Bank Bulgaria's long-term IDR was downgraded to 'BBB+' from 'A-' with stable outlook. Its support rating downgraded to '2' from '1' and short-term foreign currency IDR affirmed at 'F2'; Individual affirmed at 'D'.

Economic and Investment Bank's long-term IDR was downgraded to 'BBB+' from 'A-'; stable outlook; support rating downgraded to '2' from '1' and short-term foreign currency IDR affirmed at 'F2'; Individual affirmed at 'D'.

Eurobank EFG Bulgaria's long-term IDR downgraded to 'BBB+' from 'A-' (A minus); stable outlook; support rating downgraded to '2' from '1'
Short-term foreign currency IDR affirmed at 'F2'; Individual affirmed at 'C/D'.

Societe Generale Expressbank's long-term IDR downgraded to 'BBB+' from 'A-'; stable outlook; support rating downgraded to '2' from '1'
Short-term foreign currency IDR affirmed at 'F2'; Individual affirmed at 'D'.

UniCredit Bulbank's support rating downgraded to '2' from '1'.

"The long and short-term IDRs and support ratings reflect the high probability that support for the respective banks from their foreign parents would be forthcoming in case of need. The downgrades are a direct consequence of the downgrade of Bulgaria's Country Ceiling to 'BBB+' from 'A-'(A minus)," Fitch said.