Fitch confirmed BDB’s rating "BBB" with stable perspective
The international rating agency Fitch Ratings confirmed the Bulgarian Development Bank’s long-term credit rating “BBB" with stable perspective. All other ratings of the bank have been confirmed.
This level is equal to the rating of the Republic of Bulgaria and is practically the highest possible credit rating for the national development bank.
The assessment of the rating agency is based on two factors: on one hand the very good financial condition of BDB, and on the other - the opportunities for support of the bank by its owner - the Bulgarian state. In its report, the rating agency took into account the role of BDB in the implementation of the country's economic policy, including for overcoming the consequences of the Covid-19 pandemic.
The factors that may lead to a change in the rating are also considered. Increase or decrease could be a consequence of a change in Bulgaria's rating or an assessment of the state's propensity to support the bank. The rating agency has explicitly indicated that a possible downgrade due to a deterioration in the performance of the BDB is not its main scenario.
Against the background of this good assessment, the bank activity continues, altogether with the government's efforts in support of companies and individuals of all sectors affected by the COVID-19 pandemic. The total amount guaranteed of SME loans with with reduced collateral requirements and larger grace period has already exceeded BGN 76 million.
The companies from the trade, tourism, transport and production sectors showed the most interest in the program.
BGN 83 million of interest-free loans has been provided to individuals, approved by the commercial banks.