On 22 April 2024 BCRA - Credit Rating Agency” AD published information about raising and confirming the ratings assigned to BACB, as follows:

• Raising the Long-term rating at BB+, change of outlook from “Positive” to “Stable” and confirming the short-term rating at B;
• Confirming the national-scale long-term rating at BBB+ (BG), confirming of outlook at “Stable” and confirming the national-scale short-term rating at A-2 (BG);

Financial strength rating	Primary Rating July 27, 2016	Updated Rating 21 April 2022	Updated Rating 24 April 2023
Long-term rating	В	BB	BB+
Outlook	Stable	Positive	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-2 (BG)	A-2 (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, during the period under review, Bulgarian-American Credit Bank reported record high financial results, with a significant increase reported in profitability indicators, most of which, against the backdrop of also very high results for the banking system as a whole, BACB maintained or increased its favorable positioning compared to the system average and the reference groups of banks. Asset quality has improved, with a decline in the level of NPLs in the portfolio, which still remain at a relatively high level for the system and at a lower impairment coverage ratio. Capital adequacy has increased significantly, to levels above the system average and well above the minimum required, with liquidity remaining high.

The rating of Bulgarian-American Credit Bank can be positively influenced by the acceleration of the process of improvement in the quality of the portfolio and reaching the average standards for the banking system in the country, stabilization of the high levels of operating and financial result, with maintaining the favorable positioning on profitability indicators, while maintaining stable levels of capital adequacy and liquidity.

The rating could be negatively impacted by a contraction in the operating and/or financial result, a decline in the profitability an interruption or lack of acceleration in the improvement processes of the quality of the loan portfolio and a significant decline in the levels of capital adequacy and liquidity ratios as a result of adverse global and local effects with a potential economic downturn related to the military conflicts in Ukraine and the Middle East.

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