Belarusbank claims its assessment by Moodys to be biased (press release)

Since Moody’s downgraded long-term credit ratings (both in foreign currency and local currency) of several Belarusian banks on April 22, 2015, Belarusbank claims that the rating assessment was a biased one.

As in September 2011 the rating assignment agreement between the parties was terminated, the Moody’s has had no access to unpublished information disclosed by Belarusbank to other rating agencies and therefore does not possess full information for objective assessment of the financial position of the bank.

At the same time, as per consolidated financial statements for the year 2014 in accordance with IFRS audited by EY (Ernst & Young LLC), the bank’s profit rose from 1.0 trillion in 2013 to 1.3 trillion rubles in 2014. The return on equity increased from 4.34% to 5.28%. Profit growth by results of the year 2014 determined the rise in capital adequacy ratio from 15.9% to 16.6%. The current capital adequacy ratio is far above ratio imposed by Basel Capital Accord (8%). All of the above proves high level of financial stability of Belarusbank. In the reporting year the bank successfully worked to reduce its credit risk which is reflected in its loan loss provision coverage ratio reduction from 2.9% in 2013 to 2.7% in 2014.

Belarusbank continues to receive international credit ratings from 2 international rating agencies: Fitch Ratings (B-/B/outlook Stable) and Standard&Poor’s (B-/C/outlook Stable).

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