Fitch Ratings has affirmed Banca Transilvania’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘BB’ with a Stable Outlook, as well as BT’s Viability Rating (VR) at ‘bb’.

According to Fitch, Banca Transilvania’s Viability Rating reflects strong and stable profitability that generates internal capital, substantial capital buffers, a very solid deposit base and strong liquidity. The rating also reflects the continued improvement in asset quality.

Fitch Ratings also notes that Banca Transilvania’s revenue-generating capacity has increased following the acquisition of Volksbank Romania, with the integration of VBRO into BT completed at the end of last year. Fitch’s analysis further shows that BT’s exposure to the Swiss franc–denominated loans taken over from Volksbank Romania—after a successful conversion campaign—was small, representing only 3% of total loans at the end of the first half of this year.

The rating actions are as follows:

• Long-Term Foreign-Currency IDR: affirmed at ‘BB’; Outlook Stable
• Short-Term Foreign-Currency IDR: affirmed at ‘B’
• Viability Rating: affirmed at ‘bb’
• Support Rating: affirmed at ‘5’
• Support Rating Floor: affirmed at ‘No Floor’