CREDIT AGENCY “FITCH” HAS ALIGNED THE RATING OF
PROCREDIT BANK WITH THE MACEDONIAN CREDIT RATING
On August 19th,
2016, the International Credit Rating Agency “Fitch” reduced the credit rating
of Macedonia to “BB” which is due to the political crisis in Macedonia.
Accordingly, the ProCredit
Bank’s rating was aligned due to the changes in the rating of Macedonia only. No
institution is able to have higher rating from the rating in the state it is
operating in. The assessment does not affect the bank’s operation and ProCredit
will continue to operate reliably and securely. ProCredit Bank Macedonia has a
rating since November, 2015, when Macedonia, as a state, received its own
ProCredit Bank is the only
bank in Macedonia which has an international credit rating from the Fitch
Agency and continues to have the highest rating of a bank in Macedonia. Rating
is a result of credit portfolio quality, timely provision of required capital
and high liquidity.
ProCredit Bank is 100% German
bank, part of ProCredit Holding with headquarters in Frankfurt, Germany, with
credit rating of BBB with stable outlook.
Macedonia has received its
first credit rating of BB in 2005 by the Fitch Agency, based on the low
inflation rate and the moderate public debt. In 2006, that rating was promoted to BB+ due
to the positive relations with EU and a potential membership in the union. For
10 years, Fitch Agency confirmed that rating for Macedonia, until now, when due
to the prolonged political crisis and the reduced economic growth the BB credit
What is credit rating? Credit rating represents an assessment for the
creditability of an institution and its abilities to timely respond to the
responsibilities towards the creditors. The process of determining a credit
rating includes evaluation of large number of financial and economic
indicators. Only specialized credit rating agencies can confirm the credit
rating of an institution or a state.
What is Fitch Rating, London? Fitch Agency is a world leader in this area and
is specialized in conducting detailed researches and awarding a credit rating
to financial institutions worldwide. Business
corporations, banks and financial institution that would like to receive a
credit rating should express their own initiative and to contact the rating
agency which will send experts to confirm the same. Once the credit rating of the institution is
determined, the same shall be revised at least once a year.
What is the meaning of rated
rating allows the investors to get a picture of a country or an institution,
which based on the assessment, shall adopt a business cooperation decision with
the same. Rating agencies
classify the credit risk pursuant to predetermined groups with different levels
What does the classifications
and assessment mean? The best credit group is A - low risk level, than B - moderate credit
risk and C and D groups – high risk level. There are differences in the level
of credit risk within the separate groups as well, by awarding additional
letters or marks such as “+” and “-” for the expected outlooks in future. Based on this, highest credit rating in B
credit group would be BBB, and lowest B.
In cases of revising a credit
risk of a country, the rating of the economic institutions is consequently
aligned with the one of the country. Economic
entities must not have higher rating with the country’s rating due to the
existing risk in that area.