S&P GLOBAL RATINGS AFFIRMED BELAGROPROMBANK’S “B/B” RATINGS

February 27, 2020 S&P Global Ratings affirmed its long-term and short-term issuer credit ratings at «B/ B» level on Belagroprombank JSC, noting the ongoing improvement of asset quality. The outlook remains stable.

As stated in the S&P Global Ratings press release, the share of Belagroprombank’s problem assets decreased as of September 30, 2019 compared with the state as of the year-end 2018. Under the base scenario, further improvement in asset quality will continue in the next two years due to increasing the level of loan loss provision coverage (for legacy loans issued in previous periods), consistent improvement of risk management practices, as well as reducing the volume of directed lending.

In addition, the International Rating Agency noted that Belagroprombank’s business position will remain sustainable, reflecting its second-largest customer franchise in Belarus and its status of being an important lender to companies of strategically important economic sectors.

At the same time, in accordance with Belagroprombank’s approved development strategy for 2018-2020, the bank is consistently increasing the volume of loans issued on commercial terms. In 2019, the bank's loan portfolio grew by 16%.