Fitch Affirms 3 Belarusian State-Owned Banks’ IDRs at 'B'; Outlook Stable
<p> MINSK, May 28 - PrimePress. Fitch Ratings has affirmed the Long-Term Issuer Default Ratings (IDR) of Belarusbank (BBK), Belinvestbank, OJSC (BIB), and Development Bank of the Republic of Belarus (DBRB) at 'B'. The Outlooks are Stable. </p> <p> </p> <p> The IDRs, SRs and the SRFs of the three banks are driven by support from the Republic of Belarus (B/Stable) in case of need. The Stable Outlooks on the banks' Long-Term IDRs mirror that on the sovereign. </p> <p> </p> <p> Fitch has equalised the Long-Term IDRs and SRFs of the banks with the Long-Term IDRs of the sovereign as it believes that the sovereign has a high propensity to support these institutions. However, Fitch also views the ability of the authorities to provide such support as limited, especially if support has to be provided in foreign currency (FC). </p> <p> </p> <p> As previously reported, Fitch Ratings made a ratings action on May 15, 2020 affirming Belarus’ long-term issuer default rating at ‘B’, Outlook Stable. </p> <p> </p> <p> The affirmation reflects Fitch's expectation that Belarus's improved policy mix will preserve macroeconomic stability and manage refinancing risks on large foreign-currency debt payments through access to external bilateral and multilateral financing, Fitch experts say. </p> <p> </p> <p> Referring to Belarus’ major weaknesses, Fitch mentioned low foreign exchange reserves, weak growth prospects, government debt highly exposed to foreign currency risks, a weak banking sector, high external indebtedness and weak governance indicators relative to rating peers, high economic dependence on Russia. </p> <p> </p> <p> Belarusbank was founded in July 1991 and merged with Belarus’ Sberbank in October 1995. The state holds a 99.95% share in the bank’s statutory capital. </p> <p> </p> <p> Belinvestbank was created in September 2001. Belarus’ government holds a 99.08% stake in the bank’s charter capital. Belinvestbank is the country’s fourth largest bank with regard to assets, statutory capital, customers’ deposits, corporate credit portfolio and the sixth largest bank with regard to equity capital. </p> <p> </p> <p> Belarus Development Bank was established on June 21, 2011 after Belarusian President Alexander Lukashenko signed ordinance #261 to create open joint-stock company Bank of Development of the Republic of Belarus. </p> <p> </p> <p> The Development Bank is Belarus’ agent bank to service and repay state loans and external loans attracted against a government security and extended to finance projects included in state programs. </p> <p> </p> <p> The government holds a 95.473% stake in the Development Bank of Belarus, the share of OAO Belaruskali stands at 4.513%, the National Bank of Belarus – 0.014%. End </p> <p> </p>
2020-05-29
Primepress
Fitch Affirms 3 Belarusian State-Owned Banks’ IDRs at 'B'; Outlook Stable
MINSK, May 28 - PrimePress. Fitch Ratings has affirmed the Long-Term Issuer Default Ratings (IDR) of Belarusbank (BBK), Belinvestbank, OJSC (BIB), and Development Bank of the Republic of Belarus (DBRB) at 'B'. The Outlooks are Stable.
The IDRs, SRs and the SRFs of the three banks are driven by support from the Republic of Belarus (B/Stable) in case of need. The Stable Outlooks on the banks' Long-Term IDRs mirror that on the sovereign.
Fitch has equalised the Long-Term IDRs and SRFs of the banks with the Long-Term IDRs of the sovereign as it believes that the sovereign has a high propensity to support these institutions. However, Fitch also views the ability of the authorities to provide such support as limited, especially if support has to be provided in foreign currency (FC).
As previously reported, Fitch Ratings made a ratings action on May 15, 2020 affirming Belarus’ long-term issuer default rating at ‘B’, Outlook Stable.
The affirmation reflects Fitch's expectation that Belarus's improved policy mix will preserve macroeconomic stability and manage refinancing risks on large foreign-currency debt payments through access to external bilateral and multilateral financing, Fitch experts say.
Referring to Belarus’ major weaknesses, Fitch mentioned low foreign exchange reserves, weak growth prospects, government debt highly exposed to foreign currency risks, a weak banking sector, high external indebtedness and weak governance indicators relative to rating peers, high economic dependence on Russia.
Belarusbank was founded in July 1991 and merged with Belarus’ Sberbank in October 1995. The state holds a 99.95% share in the bank’s statutory capital.
Belinvestbank was created in September 2001. Belarus’ government holds a 99.08% stake in the bank’s charter capital. Belinvestbank is the country’s fourth largest bank with regard to assets, statutory capital, customers’ deposits, corporate credit portfolio and the sixth largest bank with regard to equity capital.
Belarus Development Bank was established on June 21, 2011 after Belarusian President Alexander Lukashenko signed ordinance #261 to create open joint-stock company Bank of Development of the Republic of Belarus.
The Development Bank is Belarus’ agent bank to service and repay state loans and external loans attracted against a government security and extended to finance projects included in state programs.
The government holds a 95.473% stake in the Development Bank of Belarus, the share of OAO Belaruskali stands at 4.513%, the National Bank of Belarus – 0.014%. End