S&P ups Bulgarian American Credit Bank

Standard & Poor's said it raised its long-term counterparty credit and certificate of deposit ratings on Bulgarian American Credit Bank (BACB) to BB from BB-.

At the same time, the short-term counterparty credit and certificate of deposit ratings were affirmed at B. The outlook is stable.

S&P said the rating action reflects BACB's successful niche franchise focused on serving the banking needs of small and midsize enterprises in Bulgaria, which provides consistently solid returns and is supported by high capitalization commensurate with its risk profile.

In addition, the bank should capitalize on the steadily improving Bulgarian economy (foreign currency, BBB/positive/A-3, local currency, BBB+/stable/A-2), the agency said.

The ratings on the bank are constrained, however, by its small niche business activity in the risky small and midsize Bulgarian corporate segment, small absolute levels of capital and industry risks, 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.