Fitch may cut Bank Zachodni

Fitch Ratings said it placed Bank Zachodni WBK's long-term issuer default rating of A+ and short-term issuer default rating of F1 on rating watch negative.

The action reflects the placement of controlling shareholder Allied Irish Banks on negative watch.

The ratings reflect the bank's unchanged strong market position, solid balance sheet, profitability, liquidity and adequate capitalization, Fitch said.

But the bank's large exposure to commercial and residential real estate development remains a concern given the expected slowdown and price correction of real estate markets, the agency said.

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