S&P Global Ratings on Oct. 11 upgraded the long-term counterparty credit ratings to B from B- of OAO Belarusbank and OJSC Belvnesheconombank, following a similar action on Belarus.
The outlook on the long-term ratings is stable, while S&P also affirmed both Belarusian banks' B short-term counterparty credit ratings.
The rating agency considers Belarusbank to be significantly exposed to risks in its domestic economy yet likely to receive moderately high support from the Belarusian government, if needed.
The sovereign upgrade allowed S&P to incorporate parental support in its ratings for Bank Belvnesheconombank and, as a result, added a one-notch uplift to the bank's long-term rating to reflect its status as a strategically important subsidiary of Russian lender Vnesheconombank.
The stable outlooks on both Belarusian lenders are based on the sovereign and also reflect the agency's view that there is little possibility that their stand-alone creditworthiness or role to the government will change substantially over the next 12 months to 18 months.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.