Ad hoc announcement pursuant to Art. 53 LR – SIX Swiss Exchange
Ad hoc announcement | 23-Oct-2023
Moody’s Investors Service takes rating action on Black Sea Trade and Development Bank (BSTDB)
BSTDB announces that Moody's Investors Service ("Moody's"), on Friday 20th October 2023, downgraded BSTDB's long-term issuer rating to Baa2 from Baa1. The rating outlook remains negative. BSTDB's senior unsecured debt ratings have also been downgraded to Baa2 from Baa1, and its senior unsecured MTN program rating has been downgraded to (P)Baa2 from (P)Baa1. Concurrently, Moody's downgraded the short-term issuer rating to P-3 from P-2.
Moody’s stated that the downgrade reflects signs of weakened shareholders' cohesiveness given the lack of an agreement on the envisaged capital increase, which risks undermining the bank's strategic relevance in the region over time. The downgrade is also informed by a weaker assessment of capital adequacy due to the deterioration of asset performance in the context of the Russia-Ukraine conflict.
Moody’s further stated that the negative outlook reflects persisting risks to capital adequacy, reflecting potential pressures on asset quality and performance, as well as risks to liquidity due to the challenges related to the Russia-Ukraine conflict and challenging funding conditions, that are expected to continue in part given the lack of an agreement on the envisaged capital increase.
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.
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.
