S&P affirms Belarusbank’s, Belagroprombank’s credit ratings at 'B/B', outlooks negative
<p> MINSK, Dec 9 - PrimePress. S&P Global Ratings says it has affirmed its 'B/B' long- and short-term issuer credit ratings on Belarus-based financial institutions – Belarusbank and Belagroprombank, with outlooks remaining negative for both banks. </p> <p> </p> <p> “There could be some delayed effects from sanctions and potential deterioration of the macroeconomic environment in 2022. We believe the impact of sanctions will be manageable for Belarusbank and Belagroprombank. This is given the banks’ low dependence on EU and U.S. wholesale funding and their moderate loan book exposure to sanctioned corporate entities,” S&P analysts said in their commentary following the latest rating action on Belarusian banks. </p> <p> </p> <p> S&P says Belarusbank’s superior business position in its domestic market remains a rating strength versus domestic peers. The bank has the most diverse business profile in Belarus and a market share exceeding 40% of total assets, total loans, and customer deposits. </p> <p> </p> <p> “We believe that Belarusbank’s ability to demonstrate resilient financial performance during the current period of economic turbulence will be very important for it to maintain its superior business position in the medium term. The bank’s state ownership makes it strongly dependent on the Belarusian government’s fiscal position. Furthermore, the bank operates exclusively in Belarus and remains highly exposed to country risk.” </p> <p> </p> <p> The negative outlook on Belarusbank mirrors that on the sovereign. </p> <p> </p> <p> S&P analysts say Belagroprombank’s asset quality appears to be somewhat weaker than the banking sector average. However, the risk that its metrics will deteriorate further, materially above the projected systemwide average for non-performing loans (15%-16%), is mitigated by its focus on the agricultural sector, which has shown fairly resilient performance during the pandemic. S&P analysts suppose during H1 2021 Belagroprombank’s share of non-performing loans didn’t increase. </p> <p> </p> <p> The negative outlook on Belagroprombank mirrors that on Belarus and reflects pressure on its asset quality over the next 12 months. </p> <p> </p> <p> Belarusbank, Belarus’ largest bank, was founded in July 1991, and was transformed in October 1995 through a merger with Sberbank of Belarus. The state holds the 99.95% share in the authorized capital of the bank. </p> <p> </p> <p> Belagroprombank was registered in 1991 and is now the country’s second largest core bank. The state owns a 91.34% stake in the bank’s charter capital. Belagroprombank is the country’s second largest system-relevant bank after Belarusbank. End </p>
2021-12-10
Primepress
S&P affirms Belarusbank’s, Belagroprombank’s credit ratings at 'B/B', outlooks negative
MINSK, Dec 9 - PrimePress. S&P Global Ratings says it has affirmed its 'B/B' long- and short-term issuer credit ratings on Belarus-based financial institutions – Belarusbank and Belagroprombank, with outlooks remaining negative for both banks.
“There could be some delayed effects from sanctions and potential deterioration of the macroeconomic environment in 2022. We believe the impact of sanctions will be manageable for Belarusbank and Belagroprombank. This is given the banks’ low dependence on EU and U.S. wholesale funding and their moderate loan book exposure to sanctioned corporate entities,” S&P analysts said in their commentary following the latest rating action on Belarusian banks.
S&P says Belarusbank’s superior business position in its domestic market remains a rating strength versus domestic peers. The bank has the most diverse business profile in Belarus and a market share exceeding 40% of total assets, total loans, and customer deposits.
“We believe that Belarusbank’s ability to demonstrate resilient financial performance during the current period of economic turbulence will be very important for it to maintain its superior business position in the medium term. The bank’s state ownership makes it strongly dependent on the Belarusian government’s fiscal position. Furthermore, the bank operates exclusively in Belarus and remains highly exposed to country risk.”
The negative outlook on Belarusbank mirrors that on the sovereign.
S&P analysts say Belagroprombank’s asset quality appears to be somewhat weaker than the banking sector average. However, the risk that its metrics will deteriorate further, materially above the projected systemwide average for non-performing loans (15%-16%), is mitigated by its focus on the agricultural sector, which has shown fairly resilient performance during the pandemic. S&P analysts suppose during H1 2021 Belagroprombank’s share of non-performing loans didn’t increase.
The negative outlook on Belagroprombank mirrors that on Belarus and reflects pressure on its asset quality over the next 12 months.
Belarusbank, Belarus’ largest bank, was founded in July 1991, and was transformed in October 1995 through a merger with Sberbank of Belarus. The state holds the 99.95% share in the authorized capital of the bank.
Belagroprombank was registered in 1991 and is now the country’s second largest core bank. The state owns a 91.34% stake in the bank’s charter capital. Belagroprombank is the country’s second largest system-relevant bank after Belarusbank. End