05.10.2021 Fitch confirms BBB rating for BDB with a positive outlook

International rating agency Fitch confirmed the Bulgarian Development Bank’s long-term credit rating as BBB with a positive outlook. The assessment shows that the risks related to rating assessment are balanced. One of the arguments for that fact is the high probability that the bank receives support by the owner, the Bulgarian state, and the financing that is provided or guaranteed by the state.

This level is equivalent to the rating agency’s assessment for the Republic of Bulgaria and is essentially the highest possible credit rating for the national development bank. All other ratings of the bank were also confirmed.

There was also a review of factors which could cause a change of the rating. An increase or decrease could be caused by a change of Bulgaria’s rating, of the estimated state willingness to support the bank, or a change in the BDB’s capitalization.

The rating agency also takes into consideration the bank’s role in governmental programs to aid companies and individuals suffering negative consequences from the COVID-19 pandemic. The total amount of confirmed guarantee loans for small and medium-sized businesses with lower security requirements and a longer grace period has exceeded BGN 347 million. The number of individuals approved by commercial banks has reached almost 53,000, and the total amount of loans granted to them is just below BGN 246 million.