Standard & Poor’s (S&P) has today downgraded the credit rating outlook for Zagrebačka Banka (Zaba) from stable to negative, following last week’s downgrade of the outlook for the country’s credit rating, while maintaining the bank’s current rating for borrowing in foreign and domestic currency at BB+.
On Friday, S&P downgraded the credit rating outlook for Croatia from stable to negative, while keeping the current rating for borrowing in foreign and domestic currency at BB+. It stated that the revision of the Croatian rating outlook reflects the agency’s view that the continued weakness of the economy, along with limited reform incentives, will lead to a weaker fiscal situation than previously estimated.
The rating of Zagrebačka Banka is aligned with the long-term credit rating of the Croatian state, as it reflects the bank’s high credit exposure to the state, according to today’s statement from the agency, which adds that any action regarding the state’s rating will trigger a similar action regarding the Bank’s rating.
Zagrebačka Banka emphasizes that the mentioned rating change is not related to its fundamentals and financial results.
“Zagrebačka Banka continues to operate with stable and profitable business based on a balanced business model, sustainable revenues, a high capital adequacy of 23.63 percent, secured liquidity sources, adequate risk management, and efficient cost management. We are a member of the Unicredit group and have strong support from the parent company in conducting commercial activities in the Republic of Croatia. Therefore, the mentioned S&P rating will not impact our operations or our relationships with our clients,” said Zagrebačka Banka.
