Bulgarian American Credit Bank : Information about the Credit Rating of Bulgarian-American Credit Bank

On 21 April 2022 BCRA - Credit Rating Agency" AD published information about confirming and keeping the ratings assigned to BACB, as follows:

• Confirming the Long-term rating at BB, confirming of outlook at "Stable", confirming the short-term rating at B;
• Confirming of the national-scale long-term rating at BBB (BG), confirming of outlook at "Stable" confirming the national-scale short-term rating at A-3 (BG);

Financial strength rating	Primary Rating July 27, 2016	Updated Rating 13 September 2021	Updated Rating 21 April 2022
Long-term rating	В	BB	BB
Outlook	Stable	Stable	Stable
Short-term rating	В	B	B
National-scale long-term rating	В+ (BG)	BBB (BG)	BBB (BG)
Outlook	Stable	Stable	Stable
National-scale short-term rating	В (BG)	A-3 (BG)	A-3 (BG)

In the process of assigning the ratings BCRA uses the methodology which is officially adopted for assigning bank financial strength ratings.

According to the published text, for the period Bulgarian-American Credit Bank continues to report improvement in the activities and in the results. A stable improvement of the assets quality is reported, together with a decrease of the non-performing exposures in the loan portfolio, which still remain at relatively high levels compared to the system, with lower degree of provisions for impairment coverage.

The accelerated improvement in the portfolio quality, maintaining and increasing of the profit accumulated and the parameters for profitability, while maintaining stable capital adequacy and liquidity may have additional positive influence on the "Bulgarian-American Credit Bank" ratings.

In negative direction, the additional deterioration of the loan portfolio quality and the significant decrease of the levels of the capital adequacy and liquidity parameters of the Bank as a result of the consequences of the COVID 19 pandemic and the war in Ukraine on the Bank's clients may influence.

The complete text of the report is available on the "BCRA-Credit Rating Agency" AD web site.