S&P ups Banca Comerciala Romana

Standard & Poor's said it raised its long-term counterparty credit rating on Banca Comerciala Romana (BCR) three notches to BBB- from BB- and removed it from CreditWatch, where it had been placed with positive implications on Sept. 12.

The outlook is stable.

At the same time, the rating on BCR's €500 million 3.75% notes due 2008 was raised to BBB- from BB-.

The agency said the rating upgrade follows the successful completion of BCR privatization tender, which will result in a forthcoming acquisition of BCR's 61.88% stake by Erste Bank der oesterreichischen Sparkassen AG (A-2).

S&P noted the ratings on BCR benefit from an easing of economic and industry risks in Romania, the improvements in the bank's operating environment and the country's sound economic growth prospects for the medium term.

rating-constraining factors include the still-high albeit declining level of adversely classified loans, which remains inferior when compared regionally, increasing competition in the sector, particularly from foreign banks, pressurized margins and the still-high economic and industry risks in the Romanian banking sector, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.