Ad hoc announcement pursuant to Art. 53 LR – SIX Swiss Exchange
Ad hoc announcement | 21-Mar-2022
Moody’s takes rating action on Black Sea Trade and Development Bank (BSTDB)
BSTDB announces that Moody's Investors Service (Moody's), on Friday 18th March 2022, downgraded BSTDB's long-term issuer rating to Baa1 from A2. BSTDB's senior unsecured debt ratings have also been downgraded to Baa1 from A2, and its senior unsecured MTN program rating has been downgraded to (P)Baa1 from (P)A2. Concurrently, Moody's downgraded the short-term issuer rating to P-2 from P-1. All ratings are placed on review for further downgrade.
Moody’s stated that the downgrade reflects the significant risks to asset quality and performance following Russia's (Ca negative) invasion of Ukraine (Caa2, ratings on review for downgrade), as well as risks to shareholder support given the relatively large shareholding of Russia. Both countries together account for about 30% of development-related assets (DRA) and a similar share of BSTDB’s capital. Moody’s stated that the review period will allow it to evaluate the impact of the military conflict and international sanctions on BSTDB's credit profile, particularly on asset performance and capital adequacy.
About BSTDB
The Black Sea Trade and Development Bank (BSTDB), an international financial institution/ multilateral development bank with its headquarters in Thessaloniki, Greece, was established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, and Ukraine. BSTDB started operations in June 1999 and has authorized capital of €3.45 billion. The Bank supports economic development and regional cooperation in the Black Sea Region through trade and project finance lending, guarantees, and equity participation in private enterprises and public entities in its member countries.
BSTDB has a proven track record of support from its shareholders in a complex geopolitical environment, as also indicated by the capital increase agreed in 2021. Past episodes of geopolitical tensions in the region have not materially impacted BSTDB's members' commitment to the institution.
As an international financial institution/ multilateral development bank, BSTDB expects to be excluded from any restrictions imposed by the governments of its member countries on cross border loan payments.
Contacts:
Mr. Ivan Larin, Treasurer
Ilarin@bstdb.org Tel: +30 2310 290456
Mr. Valery Aksenov, Director, External Relations & Communications.
vaksenov@bstdb.org Tel: +30 2310 290494
