Standard & Poor’s agency maintained the rating of Zagreb Bank (ZABA) to ‘ BB +’ ,with a negative outlook , noting the bank’s leading position in the Croatian market and adequate capitalization , but a high exposure to government through stakes in government securities and loans to government entities .
The Agency continues to believe that the Zagreb Bank ” is strategically important ” ,subsidiary of UniCredit Bank Austria AG , the majority shareholder of the bank with a share of 84.5 percent.
“We believe that the Zagreb Bank fits in UniCredit’s goal to become a major player in the business of banking in Central and Eastern Europe. Nevertheless , our long-term rating of Zaba we maintain to assessment for the long-term debt of Croatia in foreign currency , or” BB + ” ,” it is stated in the statement .
Negative outlook of S & P – I banks for rating of Zagreb bank maintain probability of its lowering ,in the case of fall of Croatia’s rating .
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” There is a possibility that we will lower the Croatian rating if the Croatian economy weakens more than our current forecast , with the deepening of the deficit or the worsening of external financing ,” states the S & P – .
In S. & P – it is estimated that the bussines position of Zagreb bank is very strong. The Bank has been long present in the domestic market and holds a share of about 25 percent in loans and deposits.
