The credit rating agency Fitch on Thursday changed its outlook for the Italian bank UniCredit from ‘positive’ to ‘negative’, while simultaneously confirming the long-term and short-term credit ratings for Zagrebačka Banka, according to a statement from the agency.
Fitch also confirmed UniCredit’s long-term rating for foreign currency borrowing at ‘A+’, but downgraded its individual rating to ‘B/C’ from the previous ‘B’. Its short-term rating for foreign currency borrowing was confirmed at ‘F1’, support rating at ‘1’, and the support rating ceiling at ‘A-‘ (A minus). Recently, the business results of the Italian bank have been pressured by lower fees, reflecting difficulties in the international asset management sector, as well as negative results from market operations, particularly in the portfolio of structured credit products, the agency’s statement notes.
Furthermore, subdued macroeconomic prospects in Italy and Germany, as well as less favorable forecasts for some markets in Central and Eastern Europe, could result in additional costs related to the inability to collect receivables on loans, the statement adds. The international rating agency Fitch Ratings simultaneously confirmed the ratings for Zagrebačka Banka, including a long-term rating for foreign currency borrowing of ‘BBB+’ (BBB plus), a short-term rating for foreign currency borrowing of ‘F2’, a ‘stable’ outlook, an individual rating of ‘C/D’, and a support rating of ‘2’, according to the Fitch agency’s statement. (H)
