Fitch Affirms Romanian Banca Transilvania BB minus rating, outlook positive

Fitch also affirmed the Romanian lender’s short term foreign currency debt rating at "B", the individual rating at "D", the support rating at "3" and the support rating floor at "BB minus", the ratings agency said in a statement.

An upgrade on Banca Transilvania’s long-term debt rating and individual rating may be triggered by improvements in the macroeconomic environment, provided that there is no significant deterioration in its loan performance or operating profitability, despite its rapid loan growth in the last three years and intense competition, Fitch said.

Since 2002, after European Bank for Reconstruction and Development’s acquisition of a 15% stake in Banca Transilvania, under a new management team, the Romanian bank has been re-branded and has achieved a significant improvement in its franchise, Fitch noted, adding the lender has transformed itself from a regional bank, providing mainly retail banking services, into a bank that offers a wide range of banking services with a nationwide presence.

At the end of the first quarter, the Romanian lender had assets worth 14.92 billion lei (EUR1=RON3.5656), and reported first-quarter net profit of RON49.3 million.

In July, Banca Transilvania had 500 branches and agencies across the country.

The lender is listed on the first tier of the Bucharest Stock Exchange and ownership is widespread.