Fitch Ratings, a global credit ratings agency, has released its ratings of ProCredit Bank of Bosnia & Herzegovina (PCBiH) and ProCredit Bank of Kosovo (PCBK).
The ratings for PCBiH are as follows: long-term foreign currency issuer default rating (IDR): B; long-term local currency IDR: B+; short-term foreign and local currency IDRS: B; individual rating: D; support rating: 5.
The ratings for PCBK are as follows: long-term foreign currency IDR: B-; short-term foreign currency IDR: B; individual rating: D; support rating: 5.
According to an online report in Dow Jones Newswires, “the IDRs and support ratings of both banks reflect Fitch’s view of the potential support available from the bank’s owners, in particular Frankfurt-based ProCredit Holding AG (PCH; BBB-),” which has a 92 percent stake in PCBiH and an 83 percent stake in PCBK. The report notes that both banks’ ratings are lowered because of deteriorating asset quality and potential country risk.
By: Stefanie Rubin, Research Associate
About ProCredit Bank of Bosnia & Herzegovina (PCBiH):
ProCredit Holding (PCH) is the parent company of PCBiH, with a 92 percent stake in the company.
According to the MIX Market, the microfinance information clearinghouse, as of 2008, PCBiH had a gross loan portfolio of USD 225.9 million, total assets of 329.2 million and 65,227 active borrowers. It had a reported return on assets (ROA) of -0.17 percent and return on equity (ROE) of -1.87 percent.
About ProCredit Bank of Kosovo (PCBK):
A successor to Micro Enterprise Bank, PCBK is a development bank that gives out loans to micro-, small and medium-sized enterprises. ProCredit Holding (PCH) holds an 83 percent stake in PCBK and is its parent company.
According to the MIX Market, the microfinance information clearinghouse, in 2008 PCBK had a gross loan portfolio of USD 609.2 million, total assets of 892.3 million and 96,420 active borrowers. Its return on assets (ROA) was 3.29 percent and its return on equity (ROE) was 42.8 percent.
Additional Resources:
Source Article: Dow Jones Newswires: “PRESS RELEASE: Fitch: ProCredit Banks in Bosnia-Herzegovina, Kosovo,” http://www.foxbusiness.com/story/markets/press-releasefitchprocredit-banks-bosnia-herzegovina-kosovo/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+foxnews%2Fbusiness+%28Text+-+Business
Fitch Ratings Definitions: http://www.fitchratings.com/creditdesk/public/ratings_defintions/index.cfm
MIX Market: ProCredit Bank of Bosnia & Herzegovina (PCBiH): http://www.mixmarket.org/mfi/procredit-bank-bih
MIX Market: ProCredit Bank of Kosovo (PCBK): http://www.mixmarket.org/mfi/procredit-bank-kos
MicroCapital Universe: ProCredit Bank of Kosovo (PCBK): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ProCredit+Bank+Kosovo+%28PCBK%29
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