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MESSAGE (ENGLISH VERSION) | |
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Fitch Ratings-London-11 August 2006: Fitch Ratings has today affirmed
Poland-based Bank Zachodni WBK's ("BZ WBK") ratings at Issuer Default
'A', Short-term 'F1', Individual ‘C’ and Support '1'. The Outlook is
Positive.
“The bank is performing well, with improving asset quality, good
profitability and strong capitalisation,” says Chris Birney, Director
with Fitch's Financial Institutions Group. “The asset management and
brokerage businesses are boosting earnings and improving revenue
diversification, while the long-awaited return of corporate loan growth
signals improved prospects.”
Fitch also notes that as the bank grows more confident in its risk
management systems, it has been relaxing some of its credit granting
procedures, with lengthening maturities for corporate lending and rapid
growth of higher-risk asset classes such as cash retail loans.
Additionally, an increasing portion of the loan portfolio consists of
mortgage and other retail loans, which have a short history in Poland
and have not been tested through a full economic cycle.
The Issuer Default, Short-term and Support ratings are based on the
extremely high potential for support from BZ WBK's controlling
shareholder, Allied Irish Banks ('AIB', rated 'AA-' (AA minus)/Stable
Outlook). BZ WBK's Issuer Default rating is currently constrained by the
Country Ceiling ‘A’ for Poland.
AIB is one of the largest banks in Ireland, with EUR8.4 billion of
equity at end-2005. It employs over 24,000 people in more than 700
offices worldwide. AIB built a 60.1% stake in WBK between 1995 and 1996.
In 1999 AIB acquired 80% of Bank Zachodni SA from the Polish State
Treasury and in 2001 merged the two banks to create BZ WBK, in which AIB
currently has a 70.5% stake.
BZ WBK is Poland's fifth largest bank by assets. The Bank operated
through 372 branches and had 7,798 full-time employees and end-June 2006.
Contact: Chris Birney, London, Tel: +44 20 7862 4093; Kamal Raja, +44 20
7417 6253.
Fitch's rating definitions and the terms of use of such ratings are
available on the agency's public site, www.fitchratings.com. Published
ratings, criteria and methodologies are available from this site, at all
times. Fitch's code of conduct, confidentiality, conflicts of interest,
affiliate firewall, compliance and other relevant policies and
procedures are also available from the 'Code of Conduct' section of this
site.§5 clause 1 item 26 of the Ordinance of the Ministry of
Finance, dated 19 nowember 2005, with regrad to current and periodic
information sent by issuers of securities
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