BELARUS: Moody’s reviews 6 banks’ long-term ratings for downgrade

Moody's Investors Service has placed on review for downgrade the local-currency and foreign-currency deposit ratings of six Belarus banks — Belarusbank, Belagroprombank JSC, BPS-Sberbank, Belinvestbank, Minsk Transit Bank and Delta Bank following the weakening of Belarus's credit profile, as reflected by the B3 sovereign bond rating on review for downgrade on February 23.
The rating agency said the actions were prompted by the six banks’ exposure to adverse changes in the country's already very challenging operating environment, including persistently high inflation, the national currency devaluation in the period December 2014-January 2015, the economy's low growth potential, a wide current account deficit, and high vulnerability to external shocks with increased risk of withdrawal of Russian financial support as a result of deteriorating economic conditions in Russia (Ba1 negative).
These ratings could be downgraded in the event of downgrade of the sovereign bond rating, Moody’s said, adding that downward rating adjustments could also be triggered by an erosion of the banks' standalone credit profiles.