International rating agency Moody's downgraded the ratings of deposits in national currency of six Belarusian banks: BBK, Belagroprombank, Belinvestbank, Minsk Transit Bank and Bank Moscow-Minsk from B2 to B3 level, Belpromstroibank – from B3 to B1 level. The agency placed ratings of banks under the supervision with the possibility of further reduction, reported in the media agency.
In addition, the downgrading list contains such financial strength ratings as BBK, Belagroprombank, Bank Moscow-Minsk and Minsk Transit Bank at E + level. The Outlook of financial stability of Belpromstroibank at the E + level is negative.
The agency experts also set long-term ratings for foreign currency deposits of BBK, Belagroprombank, Belinvestbank, Minsk Transit Bank and Bank Moscow-Minsk from the level of B3 to Caa1, placing them in the list for a further possible fall.
As noted in Moody's, the measures have been triggered by high-risk operating environment in Belarus, influencing negatively on the financial fundamentals of the banking system, primarily in liquidity and asset quality. Also the agency believe that there has been decreased the ability of Belarus’ government to ensure the system support of the three state banks (BBK, Belagroprombank, Belinvestbank) in view of the recent lowering of Belarus’ sovereign rating from B2 to B3 and its placement under surveillance with the possibility of further downgrading.
Equally, the decrease of the country’s ceiling rating on foreign currency deposits from B3 to Caa1 affected the ratings of foreign currency deposits of all the rated banks.
As Telegraf previously reported, the international rating agency Moody's Investors Service downgraded the rating of bonds of the Government of Belarus in foreign and local currency from B2 to B3. The outlook is "negative."
Recent comments