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Fitch confirms the BBB rating for UniCredit Tiriac Bank, with negative perspective

The financial evaluation agency Fitch Ratings confirmed the rating BBB for credits on long term in foreign currency of the bank UniCredit Tiriac Bank SA with negative perspective, as well as the individual rating D, according to a press release of Fitch.
The agency confirmed the rating F3 for short-term credits in foreign currency as well as the support rating 2.
The rating for long-term credits in foreign currency and the support rating reflects the support Uni
Credit Tiriac Bank obtains from the parent bank, UniCredit S.A through the help of UniCreditBank Austria AG.
These ratings could be affected by the reduction of the parent bank’s ability to offer help in case of need.
The long term ratings is kept at the present level by the country rating BBB of Romania, and the perspective of the bank’s rating depends on that of the sovereign rating.
The individual rating reflects the deterioration of the assets quality on the basis of economic situation worsening and the risks associated with the increase of loan portfolio, a big proportion being in foreign currency.
As in the case of other Romanian banks, liquidity keeps at an adequate level, due to regulating measures. In spite of the domestic capital generation, the total rate of capital dropped at 11.42% at the end of 2008 from 15.12% at the end of 2007 due to the increase in risky assets.
Estimates hope for an increase at 11.90% at the end of the first half of this year.
Fitch underlines that a higher level of the capital would offer higher guarantees against growing risks in the operational environment.
UniCredit Tiriac Bank is part of the UniCreditGroup network, the largest banking group in Central and Eastern Europe.
The net profit of Unicredit Tiriac Bank advanced by 68% up to 131 million lei ( 31 million euro) during Q1 of this year as compared to the similar interval of last year.
The total volume of assets reached 18.5 billion lei ( 4.4 billion euro) at the end of March this year up by 34% against 31 March 2008.

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