Fitch Revises ZAO Unicredit Bank’s and ATF Bank’s Outlooks to Stable

Oct 13. The FINANCIAL

Fitch Revises ZAO Unicredit Bank's and ATF Bank's Outlooks to StableFitch ratings has taken various rating actions on Italy-based UniCredit S.p.A.’s (‘A’/Rating Watch Negative/’F2’) subsidiaries in Central and Eastern Europe.

The rating actions follow the placement of UniCredit’s Long-term Issuer Default Rating (IDR) of ‘A’ on Rating Watch Negative (RWN) in ‘Fitch Takes Rating Action on Major Italian Banks Following Sovereign Downgrade’ dated 11 October 2011.

The agency has revised of Russia-based ZAO Unicredit Bank’s (‘BBB+’) and Kazakhstan-based ATF Bank’s (‘BBB’) Long-term IDR Outlooks to Stable from Positive. The Outlook revisions reflect the greater uncertainty about the future ability of UniCredit to support its subsidiairies, as reflected in the RWN on the parent’s ratings. As a result, the subsidiaries are unlikely to be upgraded, even if the Russian and Kazakhstan sovereigns (both currently on Positive Outlook) are upgraded. ATF’s rating would be capped at a level one notch lower than the Russian subsiadiry in light of Fitch’s view of the former’s lower long-term strategic importance to the UniCredit group.

The RWN on Bank Pekao SA’s Support Rating of ‘1’ reflects the potential weakening of the parent’s ability to provide support to its Polish subsidiary. However, Pekao’s other ratings, including its Long-term IDR of ‘A-‘/Stable, are driven by its intrinsic strength and are hence unaffected by the rating actions taken on the parent.

Other subsidiaries’ support-driven ratings were affirmed, as these are already capped by Country Ceilings in the jurisdictions where they operate.

The rating actions are as follows:

Bank Pekao SA:

Long-term foreign currency IDR: ‘A-‘; Unaffected

Short-term foreign currency IDR: ‘F2’; Unaffected

Viability Rating: ‘a-‘; Unaffected

Support Rating: affirmed at ‘1’ placed on RWN

UniCredit Bulbank AD:

Support Rating: affirmed at ‘2’

ZAO UniCredit Bank:

Long-term foreign currency IDR: affirmed at ‘BBB+’; Outlook changed to Stable from Positive

Short-term foreign currency IDR: affirmed at ‘F2’

Long-term local currency IDR: affirmed at ‘BBB+’; Outlook changed to Stable from Positive

Short-term local currency IDR: affirmed at ‘F2’

National Long-term Rating: affirmed at ‘AAA(rus)’; Outlook Stable

Viability Rating: ‘bb+’; Unaffected

Individual Rating: ‘C/D’; Unaffected

Support Rating: affirmed at ‘2’

UniCredit Tiriac Bank S.A.:

Long-term foreign currency IDR: affirmed at ‘BBB+’; Outlook Stable

Short-term foreign currency IDR: affirmed at ‘F2’

Viability Rating: ‘bb-‘; Unaffected

Individual Rating: ‘D’; Unaffected

Support Rating: affirmed at ‘2’

Ukrsotsbank:

Long-term foreign currency IDR: affirmed at ‘B’; Outlook Positive

Short-term foreign currency IDR: affirmed at ‘B’

Long-term local currency IDR: affirmed at ‘B+’; Outlook Positive

National Long-term Rating: affirmed at ‘AAA(ukr)’; Outlook Stable

Viability Rating: ‘ccc’; Unaffected

Individual Rating: ‘E’; Unaffected

Support Rating: affirmed at ‘4’

ATF Bank JSC:

Long-term foreign currency IDR: affirmed at ‘BBB’; Outlook changed to Stable from Positive

Short-term foreign currency IDR: affirmed at ‘F3’

Long-term local currency IDR: affirmed at ‘BBB’; Outlook changed to Stable from Positive

National Long-term Rating: affirmed at ‘AAA(kaz)’; Outlook Stable

Viability Rating: ‘b-‘; Unaffected

Individual Rating: ‘D/E’; Unaffected

Support Rating: affirmed at ‘2’

Senior unsecured debt: affirmed at ‘BBB’;

Subordinated debt: affirmed at ‘BBB-‘;

National senior unsecured debt rating: affirmed at ‘AAA(kaz)’;

National subordinated debt: affirmed at ‘AA+(kaz)’.

Zagrebacka Banka d.d.

Long-term foreign currency IDR: affirmed at ‘BBB+’; Outlook Negative

Short-term foreign currency IDR: affirmed at ‘F2’

Viability Rating: ‘bb+’; Unaffected

Individual Rating: ‘C/D’; Unaffected

Support Rating: affirmed at ‘2’

Yapi ve Kredi Bankasi A.S.

Long-term foreign currency IDR: affirmed at ‘BBB-‘; Outlook Positive

Short-term foreign currency IDR: affirmed at ‘F3’

Long-term local currency IDR: affirmed at ‘BBB’; Outlook Positive

Short-term local currency IDR: affirmed at ‘F3’

National Long-term Rating: affirmed at ‘AAA(tur)’; Outlook Stable

Viability Rating: ‘bbb-‘; Unaffected

Individual Rating: ‘C’; Unaffected

Support Rating: affirmed at ‘2’

Senior unsecured debt: affirmed at ‘BBB-‘

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