Fitch Ratings has upgraded Belgazprombank’s Viability Rating (VR) to ‘b’ from ‘b-‘. It has also affirmed the Long-Term Issuer Default Ratings (IDRs) of Belgazprombank at 'B' with Stable Outlook.
The upgrade of VR reflects Belgazprombank’s track record of more stable asset quality performance and profitability compared to Belarusian peers. Fitch’s view of Belgazprombank’s stronger loan quality is driven by the bank’s consistently low non-performing loans (NPLs, overdue by more than 90 days) and limited restructured loans.
The affirmation of the IDRs factors into the Fitch’s positive assessment of the high propensity of the bank’s higher-rated Russian parents (PJSC Gazprom (BBB-/Positive) and Gazprombank (Joint – stock Company) (BB+/Positive)) to support their subsidiary due to the strategic importance of the Belarusian market and the tight political and economic ties between the two countries.
At present Belgazprombank’s ratings, whose further upgrade is limited by the country ceiling, correspond to the highest possible level assigned by Fitch Ratings to the financial institutions in Belarus.
The rating actions are as follows:
- Long-Term IDRs affirmed at 'B'; Outlook Stable
- Short-Term IDRs affirmed at 'B'
- Support Rating affirmed at '4'
- Viability Rating: upgraded to ‘b’ from ‘b-’
Details on the above rating actions are available on www.fitchratings.com.