Opening a new account

BZ WBK, Poland's fifth-largest bank, has announced plans to enter the WSE this month.
By : Jeffrey Sparshott

    BZ WBK has had a positive rating since it was merged from Wielkopolski Bank Kredytowy and Bank Zachodni.

   Wroclaw-based Bank Zachodni WBK (BZ WBK) (http://www.bzwbk.pl/), the result of a merger between Wielkopolski Bank Kredytowy and Bank Zachodni, will start trading on the Warsaw Stock Exchange (WSE) (http://www.wse.com.pl) June 25, the exchange announced last week.

   The merger creates the fifth-largest bank in Poland in terms of assets with a 20% market share in the country's fast-growing western region, according to an analysis by Wood & Co. The new entity will be listed in lieu of WBK. WBK's stock has been trading at about zl. 26 per share, up slightly during the past year.

   Moody's Investors Service (http://www.moddys.com) last week transferred the Baa1/Prime-2 long-term and short-term deposit ratings and D+ financial strength rating of WBK to BZ WBK following completion of the legal merger on June 13. According to Moody's system, banks rated Baa for deposits offer adequate credit quality. But certain protective elements may be lacking or may be characteristically unreliable over any great length of time. Banks rated Prime-2 for deposits offer strong credit quality and a strong capacity for timely payment of short-term deposit obligations, Moody's said. The rating agency did not rank the old Bank Zachodni.

   "BZ WBK is expected to benefit from the continued strong support of (Allied Irish Bank) AIB, which is a 70.5% shareholder," Moody's said in its assessment.

   BZ WBK has total assets of zl. 25 billion ($6.25 billion) and total equity of zl. 2 billion ($500 million), Moody's said.