Upgraded rating for Banka Koper

23.12.2003

On 1 December 2003 Fitch Ratings, the international rating agency, has upgraded Banka Koper's (BK) Long-term rating to 'BBB+' from 'BBB' and its Short-term rating to 'F2' from 'F3'. At the same time, the Individual and Support ratings are affirmed at 'C' and '3'. The Outlook on the Long-term rating has been changed to Stable from Positive following the upgrade.

The upgrade reflects the benefits to Banka Koper of having the Italian bank Sanpaolo Imi (SPIMI, rated AA-' (AA minus)) among its shareholders. These include lower funding costs, greater IT and risk management support, as well as access to new products and clients. The upgrade also reflects Banka Koper's strong commission income generation and satisfactory capital base.

Rating Rationale
Banka Koper's ratings reflect its strong regional franchise, sound capital adequacy and liquidity and the positive influence of its main shareholder, Sanpaolo IMI (SPIMI). The ratings also take into account Banka Koper's sizeable equity holdings, the effects of intensifying competition and difficulties in improving cost efficiency.

UPGRADED RATING FOR BANKA KOPER

Rating 2003 Rating 2002
Long-term BBB+ BBB
Short-term F2 F3
Individual C C
Support 3 3*


* The new Support rating was assigned to Banka Koper in July 2003 according to New Support Methodology adopted by the agency:

New Support '3' (July 2003)
Old Support '4' (in the year 2002)

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