Standard & Poor’s rated Belarusbank at «B-»

Standard & Poor’s affirmed the largest Belarusian bank Belarusbank’s credit rating at «B-» with a stable outlook. The affirmation is due to Belarusbank’s business profile and financial performance stability despite the difficult operating conditions in Belarus.

The ratings on Belarusbank are constrained by the sovereign foreign currency credit ratings on Belarus, because the bank operates exclusively within the country and remains highly exposed to sovereign-related risk.

The bank’s stand-alone credit profile (SACP), at ’b’, is, however, one notch higher than the rating on Belarus, having improved after a capital increase in late 2011. JSC Savings Bank Belarusbank’s capitalization has strengthened following a Belarusian ruble 12.9 trillion Tier 1 capital injection by the Belarus government on December 30, 2011.

The rating agency believes Belarusbank plays a “very important” role for, and has a “very strong” link with, the government, resulting in a “very high” likelihood of government support in the event of need.. Despite a government announcement that it will allow the privatization of a minority stake in the bank, Standard & Poor’s analysts consider it highly unlikely in current market conditions.