Fitch affirms Belgazprombank at ‘B’, off RWN; Outlook Negative
<p> MINSK, Dec 21 - PrimePress. Fitch Ratings has affirmed Belgazprombank’s ‘B’ Long-Term Issuer Default Rating (IDR) and ‘b’ Viability Rating (VR), and removed them from Rating Watch Negative (RWN). The Outlook is Negative. </p> <p> </p> <p> Fitch placed the rating of Belgazprombank (BGPB) on RWN in June 2020 after the National Bank of Belarus (NBB) placed BGPB under temporary administration and suspended the bank’s management board. The removal of RWN follows termination of the temporary administration at the bank since December 10 and the election of a new bank’s Board of Directors. </p> <p> </p> <p> “This has diminished uncertainty over the bank’s ownership and the shareholders’ support stance,” the agency says. </p> <p> </p> <p> According to Fitch, BGPB’s Long-Term IDR and SR are driven by potential support the bank could receive, if required, from its joint Russian owners, Gazprom and Gazprombank. </p> <p> </p> <p> “The bank’s IDR and SR could be downgraded if Belarus’ sovereign ratings are downgraded and the Country Ceiling is revised lower. The bank’s VR could be downgraded in case of a sovereign downgrade as we believe the bank should not be rated above the sovereign. We could also downgrade the VR if sharp deterioration in operating conditions drives an increase in stage 3 loans sustainably above 10% of gross loans, resulting in significant performance pressures and capital erosion,” reads the report. </p> <p> </p> <p> “An upgrade of the IDR is unlikely in the near term given the Negative Outlook on Belarus’ sovereign rating. Improvements in operating conditions allowing for stabilization of asset quality and performance metrics will be positive for the bank’s standalone profile. However, a VR upgrade is unlikely without a corresponding upgrade of the sovereign rating,” Fitch says. </p> <p> </p> <p> Belgazprombank OJSC was established in 1990 as an authorized bank of Gazprom Group in Belarus. Russian Gazprom PJSC and Gazprombank JSC own 49.818% stake in Belgazprombank each; Gazprom Transgaz Belarus – 0.266%; the Republic of Belarus represented by the Ministry of Energy of Belarus – 0.097%. Belgazprombank is assigned to the system significance Group I. End </p>
2020-12-22
Primepress
MINSK, Dec 21 - PrimePress. Fitch Ratings has affirmed Belgazprombank’s ‘B’ Long-Term Issuer Default Rating (IDR) and ‘b’ Viability Rating (VR), and removed them from Rating Watch Negative (RWN). The Outlook is Negative.
Fitch placed the rating of Belgazprombank (BGPB) on RWN in June 2020 after the National Bank of Belarus (NBB) placed BGPB under temporary administration and suspended the bank’s management board. The removal of RWN follows termination of the temporary administration at the bank since December 10 and the election of a new bank’s Board of Directors.
“This has diminished uncertainty over the bank’s ownership and the shareholders’ support stance,” the agency says.
According to Fitch, BGPB’s Long-Term IDR and SR are driven by potential support the bank could receive, if required, from its joint Russian owners, Gazprom and Gazprombank.
“The bank’s IDR and SR could be downgraded if Belarus’ sovereign ratings are downgraded and the Country Ceiling is revised lower. The bank’s VR could be downgraded in case of a sovereign downgrade as we believe the bank should not be rated above the sovereign. We could also downgrade the VR if sharp deterioration in operating conditions drives an increase in stage 3 loans sustainably above 10% of gross loans, resulting in significant performance pressures and capital erosion,” reads the report.
“An upgrade of the IDR is unlikely in the near term given the Negative Outlook on Belarus’ sovereign rating. Improvements in operating conditions allowing for stabilization of asset quality and performance metrics will be positive for the bank’s standalone profile. However, a VR upgrade is unlikely without a corresponding upgrade of the sovereign rating,” Fitch says.
Belgazprombank OJSC was established in 1990 as an authorized bank of Gazprom Group in Belarus. Russian Gazprom PJSC and Gazprombank JSC own 49.818% stake in Belgazprombank each; Gazprom Transgaz Belarus – 0.266%; the Republic of Belarus represented by the Ministry of Energy of Belarus – 0.097%. Belgazprombank is assigned to the system significance Group I. End