Ad hoc announcement pursuant to Art. 53 LR – SIX Swiss Exchange
Ad hoc announcement | 22-Sep-2023
S&PGR takes rating action on Black Sea Trade and Development Bank (BSTDB)
BSTDB announces that Standard & Poor’s Global Ratings (S&PGR), on Thursday 21st September 2023, downgraded BSTDB's long-term issuer credit rating to BBB+ from A-. BSTDB's issue credit ratings have also been downgraded to BBB+ from A-. S&PGR has affirmed BSTDB’s A-2 short-term issuer credit rating. All ratings remain on CreditWatch with negative implications.
S&PGR stated that the downgrade reflects the failure of BSTDB to finalise the terms under its capital replenishment programme due to its perception of shareholders’ hesitance on the statutory treatment of an asymmetrical capital allocation and because of still unclear regulatory circumstance regarding Russia’s participation. While S&PGR recognises that BSTDB’s strong liquidity levels and solid capital reduces near-term liquidity pressures, it is S&PGR’s view that the unexpected lack of a decision on finalising the capital replenishment creates heightened uncertainty about BSTDB’s medium-term policy relevance and the coherence of the shareholder collective and they have concerns that the process of finalising the capital allocations could extend into 2024.
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.
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
Ms. Haroula Christodoulou, Acting Director, External Relations and Communications
cchristodoulou@bstdb.org Tel: +30 2310 290533
The Information contained in this announcement constitutes inside information for the purposes of Article 17 of Regulation (EU) No. 596/204 on market abuse.
