Respected international credit rating agency Fitch Ratings assigned Erste bank Croatia BBB+ rating, with a stable outlook. This is an investment grade ranking, two levels above the one currently held by the Republic of Croatia. It is also the highest ranking of any bank on the Croatian market. The so-called standalone Viability Rating (VR) of EBC is now bb.
The awarded rating reflects Fitch’s view of a high probability of support from EBC’s parent company, Erste Group Bank AG, which is based on the strategic orientation of the Group towards the Croatian market and the CEE region. At the same time, EBC’s credit rating is limited by the so-called Croatian Country Ceiling and it is emphasized that, if this limit did not exist, the rating would be positioned just one level below the rating held by Erste Group. The ranking of the so-called standalone position of Erste bank Croatia (VR) is supported by quality franchise operations on the domestic market, strong capital position, stable liquidity level, and a solid deposit base as the primary source of financing. On the other hand, the general challenges of doing business on the Croatian market, orientation on the SME segment and consumer credits, are things that Fitch believes reflects certain risks in the situation of slowing down the dynamics of economic activity.
“We are pleased that the integrity and long-term sustainability of our business model has been recognized by the ranking of one of the best credit rating agencies in the world. The fact that we hold the highest credit ranking of any bank in Croatia is a sign of trust that deeply strengthens EBC’s position as a quality partner to the public, the companies, and the Croatian economy. This is much more important in circumstances that are present on a global level, and in Croatia. We face the challenges caused by the pandemic of the coronavirus, which will have certain implications on the economy and require a coordinated approach from all participants of the market, and the role of financial institutions will be of great importance”, said Christoph Schoefboeck, EBC’s President of the Board.
“We are pleased that the integrity and long-term sustainability of our business model has been recognized by the ranking of one of the best credit rating agencies in the world. The fact that we hold the highest credit ranking of any bank in Croatia is a sign of trust that deeply strengthens EBC’s position as a quality partner to the public, the companies, and the Croatian economy. This is much more important in circumstances that are present on a global level, and in Croatia. We face the challenges caused by the pandemic of the coronavirus, which will have certain implications on the economy and require a coordinated approach from all participants of the market, and the role of financial institutions will be of great importance”, said Christoph Schoefboeck, EBC’s President of the Board.