Fitch Ratings on December 4 affirmed the long-term Issuer Default Rating (IDR) for Romania’s largest lender, Banca Transilvania (BVB: TlV), at BBB- with a negative outlook, in line with the country’s sovereign rating.\u00a0<\/p>\n
The price of the bank’s shares rose 1.2% on the day the rating agency announced its decision, bringing the bank’s market capitalisation to RON 32.7 billion (EUR 6.5 billion).<\/p>\n
The rating reflects the bank’s strong and well-established domestic franchise, healthy capital buffers supported by strong internal capital generation and stable funding profile, and reasonable asset quality, underpinned by conservative underwriting.\u00a0<\/p>\n
Future actions on the bank’s rating would be triggered by changes in the sovereign ratings or sustained deterioration in the bank’s asset quality (with the impaired loans ratio rising above 4%) and a structural weakening of operating profitability to below 2.5% of risk-weighted assets.<\/p>\n
Banca Transilvania’s Viability Rating (VR) was confirmed at bbb-.<\/p>\n
The negative outlook on the ‘bbb-‘ operating environment score for Romanian banks mirrors that on the sovereign rating and reflects the potential for a downward revision of the score if the sovereign rating is downgraded, the rating agency said.\u00a0<\/p>\n
Risks to the Romanian sovereign and the operating environment put pressure on Transilvania’s business, risk, and financial profiles, given the bank’s large concentration in the country.<\/p>\n
iulian@romania-insider.com<\/em><\/p>\n (Photo source: Bancatransilvania.ro)<\/em><\/p>","protected":false},"excerpt":{"rendered":" Fitch Ratings on December 4 affirmed the long-term Issuer Default Rating (IDR) for Romania’s largest lender, Banca Transilvania (BVB: TlV), at BBB- with a negative outlook, in line with the country’s sovereign rating.\u00a0 The price of the bank’s shares rose 1.2% on the day the rating agency announced its decision, bringing the bank’s market capitalisation […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-8009","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/ofero.news\/index.php?rest_route=\/wp\/v2\/posts\/8009","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ofero.news\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ofero.news\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/ofero.news\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8009"}],"version-history":[{"count":0,"href":"https:\/\/ofero.news\/index.php?rest_route=\/wp\/v2\/posts\/8009\/revisions"}],"wp:attachment":[{"href":"https:\/\/ofero.news\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8009"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ofero.news\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8009"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ofero.news\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8009"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}