By Andrey Smirnov
The Bank’s ratings reflect Standard & Poor’s opinion that there is an almost certain likelihood that the Belarusian Government would provide timely and extraordinary support sufficient to service the Bank’s financial obligations, if needed. Experts underline that the Development Bank plays a ‘critically important’ role in solving state policy tasks while providing significant long-term loans for state programmes.
Standard & Poor’s also notes the Development Bank’s integral link to the Government of Belarus, demonstrated by 100 percent ownership by the state, previous capital injections provided and the state’s de facto responsibility for all of the Bank’s obligations. Moreover, key government figures are members of the Development Bank Supervisory Board, headed by Prime Minister Mikhail Myasnikovich, allowing the state to maintain close oversight of the Bank’s activities.
Taking into account the above mentioned factors, Standard & Poor’s assessment of the Development Bank used criteria elaborated for organisations which are connected with the state. The Development Bank became Belarus’ only financial institution whose long- and short-term ratings are the same as the sovereign ratings of the Republic of Belarus. High liquidity and an ample resource base are additional factors in the Bank’s financial stability.
“The receipt of the first credit rating is a landmark event for us. The rating from the international agency is an independent assessment for the Bank’s partners, as well as a source of additional information about its activities and financial state. The assignment of a credit rating to the corporate borrower, completely meeting the sovereign level, reflects the Bank’s status as a top class borrower on the financial market of Belarus,” notes Sergei Rumas, Chairman of the Development Bank’s Board.
