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21 May 2015
Fitch downgrades top Austrian banks on state support
FXStreet (Mumbai) - Austria’s banks have lost their top debt grades, following a review of the state support lenders can expect in times of crisis carried out by the ratings agency Fitch.
The ratings agency has cut its long-term Issuer Default Ratings (IDRs) and senior debt ratings of Erste Group Bank to 'BBB+'/'F2'; Raiffeisen Bank International AG to 'BBB'/'F3'; UniCredit Bank Austria to 'BBB+'/'F2'; and Volksbanken-Verbund to 'BB-'/'B'.
The accompanying statement noted, "Fitch believes legislative, regulatory and policy initiatives have substantially reduced the likelihood of sovereign support for commercial banks in the European Union,"
"We view Erste, RBI and Bank Austria's management capabilities, execution and strategic positioning as comparably solid but with only modest positive VR implications given the recurring challenges that they face in a large number of diverse markets."
The ratings agency has cut its long-term Issuer Default Ratings (IDRs) and senior debt ratings of Erste Group Bank to 'BBB+'/'F2'; Raiffeisen Bank International AG to 'BBB'/'F3'; UniCredit Bank Austria to 'BBB+'/'F2'; and Volksbanken-Verbund to 'BB-'/'B'.
The accompanying statement noted, "Fitch believes legislative, regulatory and policy initiatives have substantially reduced the likelihood of sovereign support for commercial banks in the European Union,"
"We view Erste, RBI and Bank Austria's management capabilities, execution and strategic positioning as comparably solid but with only modest positive VR implications given the recurring challenges that they face in a large number of diverse markets."