Fitch Ratings has downgraded BSK’s Long-term IDR to A from A+. Outlook stable. All other ratings have been affirmed. This rating action followed downgrade of the Group rating, which reflects its deteriorating profitability affected by the global financial crisis and is expected to remain under pressure throughout 2009.
Rating action includes:
Long-term IDR downgraded to 'A' from 'A+'; Outlook Stable
Short-term IDR affirmed at 'F1'
Individual rating affirmed at 'C'
Support rating affirmed at '1'
We believe further macroeconomic deterioration is inevitable and will have a negative impact on assets quality and profitability. However results of BSK in 2H09 are likely to be better than in 1H09, due to the fading impact of revaluation and provisions related to FX options, which total negative impact amounted to PLN 206.4m in 1H09. Nevertheless, in an environment where rating downgrades have become the norm, we expect the news to have a neutral trading impact.