Fitch affirms HVB Splitska Banka

Fitch Ratings said it affirmed HVB Splitska Banka dd's (HSB) support rating at 2 following Fitch's understanding that UniCredito Italiano (UCI) may not be allowed by the Croatian Antitrust Commission to hold majority stakes in both HSB and Zagrbacka Banka.

Fitch said it considers it likely that if forced to dispose of one bank, UCI will sell the smaller HSB.

Although the requirement of sale has not been confirmed by any party, Fitch said it views this prospect as a strong probability given the precedent in UCI's sale of its stake in HSB in 2002 to BACA when the Croatian authorities disallowed UCI from owning both HSB and Zagrbacka Banka directly.

However, as Fitch noted it believes that the stake will be sold to a single investor, which is in turn likely to be a well-rated bank, it is the agency's view that support for HSB in case of need will continue to be highly probable.

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