Fitch lifts KBC Bank view to positive

Fitch Ratings said it affirmed KBC Bank’s and KBC Group NV’s long-term issuer default ratings and senior debt ratings at A-.

The outlook also was revised to positive from stable.

KBC Bank and KBC Group’s viability ratings also were affirmed at A-.

The outlook revision follows a periodic portfolio review of major Benelux banking groups rated by Fitch.

KBC Bank’s ratings are underpinned by the bank’s strong retail and corporate franchise in its two key markets, Belgium and the Czech Republic, its conservative risk appetite, improving earnings generation, sound capital ratios and robust liquidity, the agency said.

The positive outlook reflects KBC Bank’s improved earnings generation and capitalization, which have reduced its vulnerability to its still high level of unreserved impaired loans, Fitch said.

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